We wanted to give you a friendly (and slightly less exciting) update on some upcoming changes that might affect your rates and commissions from April. We know tax and wage updates aren’t exactly the highlight of your day, but this one’s important, so please read through it:
New Minimum Wage Rates – Effective 1st April 2025
The Government has announced the new National Minimum Wage rates for 2025.
Here’s what’s changing:
| Exclusive of Holiday Pay |
| Inclusive of Holiday Pay |
|
New Minimum Wage Rate | New rate (£) | Increase (£) | New rate (£) | Increase (£) |
21 and over | £12.21 | £0.77 | £13.68 | £0.86 |
18 - 20 | £10.00 | £1.40 | £11.21 | £1.57 |
16 - 17 | £7.55 | £1.15 | £8.46 | £1.29 |
Apprentice | £7.55 | £1.15 | £8.46 | £1.29 |
Oh, and there’s more…
Employer NI Contributions – Also Going Up
From the 6th of April 2025, Employer National Insurance contributions will increase from 13.8% to 15%. In addition, the threshold at which employers are required to pay Employers NIC reduces from £9,100 to £5,000 per year (£96 per week).
What Does This Mean for You?
With rising wage costs and increased NI contributions, it’s time to review your contractor rates and client charge rates to make sure you’re not working for free! 😉
💡 Important: These changes need to be reflected in payments for hours worked this week (w/c 31st March), with wages being processed on Friday, 11th April.
We know this isn’t the most thrilling news, but a little planning now will save any headaches later! If you have any questions or need guidance, we’re here to help.