From 1 April 2025, changes to the National Minimum Wage (NMW) and National Living Wage (NLW) came into effect – and businesses must act quickly to remain compliant.
The most significant update is that the NLW has increased from £11.44 to £12.21 per hour.
Younger age bands have also seen notable increases:
If an apprentice is aged 19 or over and has completed the first year of their apprenticeship, they are entitled to the NMW for their age group.
Every employer, regardless of size or sector, is legally obliged to pay the correct wage.
Failing to do so can result in:
To stay on the right side of the law, make sure all employees are paid according to actual hours worked during their pay reference period.
This includes overtime and variable hours.
You can use HMRC’s online wage calculator to check that your current pay rates comply.
To prove compliance, you must maintain clear payroll records. These should show:
For records dated on or after 1 April 2021, you are required to keep them for at least six years.
Whether you store them digitally or on paper, they must be easy to access and understand.
If you are uncertain whether your payroll meets the new minimum wage standards, our team can carry out a full compliance review.
We can help you identify any risks and take action to ensure your business meets all legal requirements.
Get in touch today for peace of mind.
