From 1 April 2025 the National Minimum Wage (NMW) increases by nearly 7%.
The NMW increase of £0.77 represents a 6.7% rise, equivalent to an annual increase of around £1,400 for a full-time worker.
In summary, effective 1 April 2025, the following national minimum wage rates will apply:
Plan ahead
Ensure your payroll procedures are current and notify staff. This transparency may foster positive employee relations and provides an opportunity to clarify that overtime worked before 1 April will be paid at the previous rate. For more details, visit gov.uk.
*21-22 Year olds: There's no longer a difference between the National Living Wage for those over 23 years old and the National Minimum Wage for those over 21. All employees over 21 years old now receive the higher NMW rate.
*Apprentices: are entitled to the apprentice rate if they’re either:
aged under 19
aged 19 or over and in the first year of their apprenticeship
Auto enrolment pension rates and thresholds
The Workplace Pension Auto Enrolment earnings trigger of £10,000 per year remains the same as do the minimum contribution rates, with no more planned increases:
Employer minimum pension contribution 3% and staff contribution 5%
The lower qualifying earnings band (see note #) remains at £6,240 and the upper limit at £50,270.
#Note: Lower qualifying earnings band: Is the threshold at which non-eligible jobholders (those not auto-enrolled) can ask their employers to opt-in. It's also the threshold over which 3% and 5% contributions are paid.
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