19 March 2025
Although the payroll focus is firmly on year end right now, it also means that the new tax year is fast approaching.
This year will see another healthy increase in the minimum wage rates, and while that’s great news for some employees it brings additional considerations for payroll professionals
The rates from 1 April 2025 are:
|
|
Rate |
Increase (£) |
Percentage increase |
|
National Living Wage (21 and over) |
£12.21 |
£0.77 |
6.7 |
|
18-20 Year Old Rate |
£10.00 |
£1.40 |
16.3 |
|
16-17 Year Old Rate |
£7.55 |
£1.15 |
18.0 |
|
Apprentice Rate |
£7.55 |
£1.15 |
18.0 |
|
Accommodation Offset |
£10.66 |
£0.67 |
6.7 |
This is the perfect opportunity for a review, to ensure that your employees with salary sacrifice agreements have post salary sacrifice pay over the minimum wage and that no other deductions are impacting your NMW compliance.
Our advisory team has seen an increase in questions regarding salary sacrifice and its impact on NMW, indicating the complexity of the issue.
With that in mind, we want to highlight the importance of compliance with NMW regulations, especially with the transition to new rates and urge employers and agents to get their payroll processes ready for 1 April 2025 and emphasizes the importance of compliance, especially around salary sacrifice.
We offer a range resources and support to help payroll professionals and employers ensure their workers are paid compliantly.
Salary sacrifice | CIPP – advisory FAQs
National Minimum Wage (NMW) | CIPP - advisory FAQs
Payroll QuickLearn Short On-Demand Training Courses | CIPP – PQL
Online Resources for Payroll Professionals| CIPP | CIPP
Minimum wage: compliance is critical | CIPP
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