Starting 1 April 2025, the UK government will introduce significant increases to both the National Living Wage (NLW) and the National Minimum Wage (NMW). These changes are expected to impact millions of workers.
Key Wage Increases
The National Living Wage for workers aged 21 and over will rise 6.7% to GBP 12.21 per hour.
The National Minimum Wage for workers aged 18 to 20 will increase 16.3% to GBP 10.00 per hour.
The Apprenticeship Rate and wages for 16- to 17-year-olds will see an 18% increase to GBP 7.55 per hour.
According to an official impact assessment, these reforms are set to inject approximately GBP 1.8 billion into workers' earnings over the next six years.
Implications for Employers
The wage increases will have a direct impact on businesses across various industries. Employers should take the following considerations into account:
1. Payroll Adjustments & Budgeting
Companies must prepare for increased payroll costs and ensure they comply with the new wage rates by April 2025. Financial planning should account for the higher minimum earnings for eligible employees.
2. Compliance & Policy Updates
HR and payroll teams must update policies, employment contracts, and payroll systems to reflect the new rates. Businesses should review their pay structures to ensure all employees receive the correct wages in accordance with legal requirements.
3. Impact on Apprenticeship Programs
With an 18% increase in the apprenticeship rate, businesses offering apprenticeships must reassess training budgets and funding allocations to accommodate higher wage costs.
How Atlas Can Support
Navigating wage changes across multiple jurisdictions can be complex, but Atlas simplifies global workforce management. Our experts ensure your business stays compliant with evolving employment laws, from payroll adjustments to local labor regulations.
With our support, you can seamlessly implement the new wage rates while maintaining operational efficiency. Contact us to learn how we can help your business adapt to these changes.