Employers – are you ready for April 2025?
Posted: 24 March 2025
The new National Living Wage and National Minimum Wage rates will come into force from 1 April 2025.
There are also changes to the National Insurance employers pay that take effect from 6 April. For many businesses, the April payroll will represent a sizeable step up in labour costs.
As a reminder, here is a quick recap of the changes.
National Minimum Wage rates
The new minimum wage rates are as follows:
| Hourly Rate | |
| National Living Wage (21 and over) | £12.21 |
| 18-20 Year Old Rate | £10.00 |
| 16-17 Year Old Rate | £7.55 |
| Apprentice Rate | £7.55 |
| Accommodation Offset | £10.66 |
Employers National Insurance changes
The percentage rate of Employers’ National Insurance (NI) that’s paid on an employee’s earnings increases to 15% (from 13.8%).
The threshold that an employee needs to be earning before any Employers’ NI is due drops to £5,000 a year. Previously this was £9,500.
If you use online payroll software, the new Employers’ NI rates should be automatically included. However, please check with your payroll software provider if you are not sure.
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