Minimum Wage Rise From April 2025
7th November 2024
Pre-budget the government has announced more significant rises in the minimum wage from April 2025. Known officially as the National Living Wage an increase of 6.7% will see the rate increase from £11.44 to £12.21 for employees over the age of 21.
An even larger increase for workers aged 18-20 of 16% sees the minimum wage rise from £8.60 to £10. This reflects the stated aim of harmonising pay rates regardless of age.
The apprentice rate, paid to all apprentices in the first year of their apprenticeship, will increase from £6.40 to £7.55 per hour.
Within the budget itself, the Chancellor announced that the Employer NI threshold will fall from £9,100 to £5,000 per annum, whilst at the same time increasing the payable rate from 13.8% to 15%.
The current cost of employing someone working 40 hours per week on minimum wage is £457.60, plus a further £39.00 in National Insurance. From April, this cost will increase to £488.40 (£25,397 pa), plus a further £58.84 in National Insurance. A 10% increase in cost per employee.
On the plus side, in order to help small businesses, the employer allowance, currently standing at £5,000 will increase to £10,500.
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Disclaimer - All information in this post was correct at time of writing.
