From April 2025, the UK National Insurance (NI) and National Minimum Wage (NMW) will increase. The key updates include:
- National Insurance increase for businesses – Employer NI contributions will rise from 13.8% on salaries above £9,100 to 15% on salaries above £5,000
- National Minimum Wage increases – aligning with inflation and economic trends
- Business rates relief reducing
These changes, recommended by the Low Pay Commission (LPC), aim to support workers by ensuring wages keep pace with inflation and meet the goal of reaching at least two-thirds of median earnings.
What will the UK Minimum Wage be in 2025?
From 1 April 2025, The National Minimum Wage rates for 2025 are as follows:
First 12 weeks of assignment:
| Category of worker | NMW | Umbrella |
| National Living Wage Rate (Aged 21 and over) | 12.21 | 15.95 |
| 18-20 Year Old Rate | 10.00 | 13.10 |
| 16-17 Year Old Rate | 7.55 | 9.90 |
| Apprentice Rate | 7.55 | 9.90 |
Post 12 weeks:
| Category of worker | NMW | Umbrella |
| National Living Wage Rate (Aged 21 and over) | 12.21 | 16.25 |
| 18-20 Year Old Rate | 10.00 | 13.35 |
| 16-17 Year Old Rate | 7.55 | 10.10 |
| Apprentice Rate | 7.55 | 10.10 |
What are the consequences of offending the National Minimum Wage?
Failing to comply with the HMRC minimum hourly rates could result in penalties of up to £20,000 per worker, alongside the repayments of any underpayments to the specified employees affected.
The UK Government has re-affirmed its commitment to enforcing minimum wage laws and will continue to publicly name and shame businesses that fail to comply.