04 February 2025
The Department for Business and Trade (DBT) and HM Treasury have released a press statement around the changes to National Living Wage (NLW) and National Minimum Wage (NMW) Rates from April 2025.
The statement states that full time workers are expected to see a “pay boost worth £1,400”. Chancellor of the Exchequer, Rachel Reeves, commented:
“This Government promised a genuine living wage for working people that will support people with the cost of living, creating a workforce that is fit and ready to help us deliver number one mission to growth the economy.
“This pay boost for millions of workers is a significant step towards delivering on that promise.”
The CIPP’s CEO, Jason Davenport, provided a comment for government, which is included in the press release. He highlighted the importance of compliance, especially around salary sacrifice that can catch many employers out with the transition to new NLW and NMW rates, commenting:
“With continued pressure on employers, it’s imperative that we ensure the new rates are understood, implemented and paid to workers correctly.
“Compliance can be complex with issues for employers to be alert to around, for example, salary sacrifice arrangements.
“The CIPP urges employers and agents to get their payroll processes ready for 1 April 2025 and the CIPP is on hand with support, advice and resources to help payroll professionals and employers ensure their workers are paid compliantly.”
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