Big changes are coming in April 2025 that will affect businesses across the UK. From increases in the National Minimum Wage (NMW) and National Living Wage (NLW) to adjustments in employer National Insurance (NI) rates and statutory payments—it’s crucial to stay informed and prepared.

National Minimum and Living Wage Increases

The government has accepted the Low Pay Commission’s recommendations for new wage rates starting 1 April 2025. The updates include a significant increase across all age bands, with the goal of narrowing the gap and moving toward a single adult rate.

New NMW & NLW Rates:

• 21 & Over (NLW): £12.21 per hour (up by £0.77, a 6.7% increase)
• 18 – 20 Year Olds: £10.00 per hour (up by £1.40, a 16.3% increase)
• 16 – 17 Year Olds: £7.55 per hour (up by £1.15, an 18% increase)
• Apprentices: £7.55 per hour (up by £1.15, an 18% increase)

These increases represent the largest on record, aiming to improve living standards for workers while posing cost considerations for businesses.

Employer National Insurance (NI) Changes

From April 2025, several updates to employer NI contributions will take effect:

• The rate of Secondary Class 1 Employer NI will rise from 13.8% to 15%.
• The NICs Secondary Threshold will drop from £9,100 to £5,000, meaning employers will start paying NI contributions sooner.
• The Employment Allowance will increase from £5,000 to £10,500, giving eligible businesses greater relief.
• The previous restriction preventing businesses with a liability over £100,000 from claiming Employment Allowance will be removed.

Employers should assess how these changes will impact their payroll costs and consider adjusting their budgets accordingly.

Updates to Statutory Payments

Statutory payments such as Sick Pay (SSP), Maternity Pay (SMP), and Paternity Pay (SPP) will also see increases:

• SSP: Increasing from £116.75 to £118.75 per week.
• SMP/SPP and other statutory family-related leave pay: Increasing from £184.03 to £187.18 per week.
• The earnings threshold to qualify will rise from £123 to £125 per week.

Businesses should review their payroll processes to ensure compliance with these updated rates.

How Elite Can Help

Navigating these changes can be overwhelming, but you don’t have to do it alone. At Elite, we work closely with businesses to provide workforce solutions that help you stay ahead—whether it’s adjusting staffing levels in line with rising costs or ensuring compliance with evolving regulations.

If you’re looking for expert recruitment support to help your business stay on track, get in touch with our team today.

📞 Call us on 0151 420 1219 or visit our website elite-employ.com to learn more.

Stay informed, stay prepared, and let Elite support you through these upcoming changes.