National Minimum Wage Update: What Employers Need to Know for April 2025

As April approaches, it’s time to get ready for the new National Minimum Wage (NMW) and National Living Wage (NLW) rates set to take effect from 1st April 2025. Whether you have one employee or a full payroll to run, staying compliant with these changes is crucial — not just to avoid penalties, but to make sure your people are paid fairly and correctly.

Here’s a quick breakdown of what’s changing and what you need to do.

📈 The New Minimum Wage Rates from April 2025

Category	Hours/Week	Old Rate	New Rate	Old Monthly Pay	Old Yearly Pay	New Monthly Pay	New Yearly Pay	Monthly Difference	Yearly Difference
21 and Over	37.5	£11.44	£12.21	£1,859.00	£22,308.00	£1,984.13	£23,809.50	+£125.13	+£1,501.56
	40	£11.44	£12.21	£1,982.93	£23,795.20	£2,116.40	£25,396.80	+£133.47	+£1,601.64
18 to 20	37.5	£8.60	£10.00	£1,397.50	£16,770.00	£1,625.00	£19,500.00	+£227.50	+£2,730.00
	40	£8.60	£10.00	£1,490.67	£17,888.00	£1,733.33	£20,800.00	+£242.66	+£2,911.91
Under 18	37.5	£6.40	£7.55	£1,040.00	£12,480.00	£1,226.88	£14,722.50	+£186.88	+£2,242.56
	40	£6.40	£7.55	£1,109.33	£13,312.00	£1,308.67	£15,704.00	+£199.34	+£2,392.08
Apprentices	37.5	£6.40	£7.55	£1,040.00	£12,480.00	£1,226.88	£14,722.50	+£186.88	+£2,242.56
	40	£6.40	£7.55	£1,109.33	£13,312.00	£1,308.67	£15,704.00	+£199.34	+£2,392.08

🧠 What This Means for You

• Check employee ages: If you’ve got team members turning 18, 21, or finishing an apprenticeship, make sure their pay reflects the correct new rate from the date of their birthday or status change, not just from April.

• Review pay structures: If you pay just above the minimum, you may want to maintain your margin — especially if you're competing to retain staff.

• Update your payroll system: Make sure your software or payroll team is ready for the switch on 1st April so there’s no disruption to employee pay.

• Communicate with your team: Let your employees know about the upcoming change — especially if they’ll see a boost in their pay packet.

⚠️ Don’t Forget: It’s a Legal Requirement

Underpaying staff – even by mistake – can result in:

• Repayment of underpaid wages

• Up to 200% of the underpayment in fines

• Being publicly named by HMRC

It's not worth the risk — make sure you're compliant well ahead of time.

💬 Need Help?

If you're unsure how the new rates affect your team or you want help forecasting the cost of your workforce for the year ahead, let’s have a chat. We help employers stay ahead of changes like this - no stress, no panic, just solid payroll support.

Stay compliant, plan ahead, and treat your people well - that’s a win all round.