Upcoming Changes to National Insurance & Minimum Wage from April 2025

For members who have UK-based employees, it is important to be aware of the upcoming changes to National Insurance, starting in April 2025.

The headline changes are as follows:

1. An increase in the rate of employer contributions from 13.8% to 15.0% effective from April 2025
2. A cut in the secondary threshold (which is the point at which employers become liable to pay NICs on employees’ earnings) from £9,100 per year to £5,000 per year.
3. An increase in the Employment Allowance (‘EA’). This currently allows businesses with employer NICs bills of £100,000 or less in the previous tax year to deduct £5,000 from their employer NICs bill. The Allowance will be increased from £5,000 to £10,500, and the £100,000 threshold for eligibility will be removed, to expand it to all eligible employers with employer NICs bills.
4. Also below is confirmation of the new national minimum wage rates from 1^st April. Where we know the hours per week that an employee works, we will increase this automatically in the next pay reference period (the period in which the hours are worked from 1^st April), if you would prefer this to be increased from 1^st April instead then please advise us of this when sending over the payroll. National Minimum Wage and National Living Wage rates – GOV.UK (www.gov.uk)

Current rates

These rates are for the National Living Wage (for those aged 21 and over) and the National Minimum Wage (for those of at least school-leaving age). They change on 1 April every year.

Please let us know if you have any queries – office@blcc.co.uk