April 2025 Rate Changes
The National Living Wage and National Minimum Wage rates are changing from 1 April 2025:
| Age Band | Current Rate | New Rate | Increase |
|---|---|---|---|
| 21 and over (NLW) | £11.44 | £12.21 | 6.7% |
| 18-20 | £8.60 | £10.00 | 16.3% |
| Under 18 | £6.40 | £8.00 | 18.0% |
| Apprentice | £6.40 | £8.00 | 18.0% |
Key Actions for Clients
1. Review Payroll Systems
Ensure payroll software is updated to apply new rates automatically from 1 April.
2. Check Salary Sacrifice Schemes
Verify that salary sacrifice arrangements don't reduce pay below the new minimum.
3. Update Contracts
Where contracts specify exact rates, update documentation to reflect changes.
4. Budget for Increases
Help clients understand the impact on their wage bills and plan accordingly.
Compliance Checking
MBridge Factory's Minimum Wage Calculator helps you:
- Verify compliance for any pay period
- Calculate arrears if underpayments are discovered
- Prepare for upcoming rate changes
- Generate compliance reports
Don't Get Caught Out
HMRC continues to actively enforce minimum wage compliance, with naming and shaming for persistent offenders.
Have a question about this article?
Our team is happy to help with any questions about payroll regulations. Get in touch and we will get back to you within one working day.
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