The latest wage increases came into force on 1 April 2025 – are your payroll systems prepared? If you employ staff, reviewing your pay practices is now more crucial than ever.
The National Living Wage now extends to workers aged 21 and over, rising to £12.21 per hour.
Meanwhile, younger employees have seen sharp increases in the National Minimum Wage:
Apprentices aged 19 or older who have completed their first year must be paid the NMW applicable to their age bracket.
All employers must meet their legal wage obligations. If you fall short:
Employers must pay at least the legal minimum for every hour worked within each worker’s pay reference period, usually weekly or monthly.
It’s important to factor in actual hours worked, not just hours scheduled.
Risk points to watch include:
You can use HMRC’s official calculator to double-check your rates.
You must be able to prove you’ve complied. Keep records that cover:
Records created on or after 1 April 2021 must be kept for at least six years. They can be digital or paper-based but must be accessible and well-organised.
If you’re unsure whether your payroll remains fully compliant, don’t take any chances. We can provide a full audit and help you fix any issues before they result in penalties.