What employers need to know about upcoming rate rises in April 2025
Author: Swyn Llyr
Key contact: Chris Aldridge
Every April, rates for statutory payments and wages in the UK are reviewed and adjusted to reflect economic conditions. These updates impact employers, employees, and families alike. Below, we summarise what employers need to know about upcoming rate rises in April 2025.
National Minimum and Living Wage
The National Minimum and Living Wage rates are set to rise from 1 April 2025, supporting low-income workers, and reflecting cost-of-living increases. These rates depend on the employee’s age and status:
- National Living Wage (21 and over): £12.21 per hour (up from £11.44).
- 18-20-year-olds: £10.00 per hour (up from £8.60).
- 16-17-year-olds: £7.55 per hour (up from £6.40).
- Apprentices: £7.55 per hour (up from £6.40).
Employers must ensure compliance and make adjustments to payroll systems accordingly.
Statutory Sick Pay
Statutory Sick Pay (SSP) will also increase, providing essential financial support to employees who are too unwell to work. From April 2025, SSP will rise to £118.75 per week (up from £116.75).
National Insurance
Employers will also face a double whammy from upcoming National Insurance changes. From April 2025, the employer National Insurance contribution rate will rise from 13.8% to 15%, increasing payroll costs for businesses. Additionally, the secondary threshold—the point at which employers start paying contributions—will be reduced from £9,100 to £5,000 per year, bringing more earnings within the scope of employer contributions.
For organisations, the immediate impact will be a significant increase in NIC liabilities and they will need to consider how to manage this while mitigating any effect on employees.
For employment-related advice, contact our Employment team.
