Employment Law Update: Changes to Minimum Wage and Employer Contributions

From April 2025, the UK’s National Minimum Wage and Employer National Insurance Contributions (NICs) are increasing.

This will result in higher staffing costs that could impact your business operations. That is why Meridian is here to help you navigate them smoothly.

What’s changing?

National Minimum Wage increases

From 1st April, the new hourly rates will be:

• National living wage (21+): £12.2 (up from £11.44)
• 18-20 year-olds: £10 (up from £8.60)

• 16-17 year-olds and apprentices: £7.55 (up from £6.40)

Employer National Insurance Contributions

From 6th April:

• Employer NICs will increase from 13.8% to 15%
• The secondary threshold is where employers begin to pay NICs on employee wages. This threshold will drop from £9,100 to £5,000, meaning employers will pay NICs on more of their employees' wages.
• The Employment Allowance will rise from £5,000 to £10,500, making more small businesses eligible for relief.

How will this impact your business?

There is no denying that many businesses will significantly increase their staffing costs. Regardless of your business type, these changes could mean:

• Higher staffing costs – increasing pressure on profit margins.
• Pay structure adjustments – ensuring wage gaps between different roles remain fair.
• Potential price increases – passing costs onto customers might become unavoidable, particularly if your suppliers pass their costs onto you.

It’s not just about the numbers, though. Changes like these can also impact employee morale, recruitment plans and business growth. That’s why Meridian is here to support you.

How Meridian can help

You don’t have to navigate these changes alone. Meridian has over 35 years of experience supporting businesses through changes like this.

As your recruitment partner, we’re invested in your business's success. Here’s how we can help:

• Workforce planning – reviewing your staffing strategy to keep costs under control while maintaining efficiency
• Compliance and risk management – ensuring you meet all legal requirements so you don’t get caught out.
• Financial impact guidance – helping you understand what these changes mean for your bottom line and how to adapt.
• Retention and engagement strategies – supporting you in keeping your best people happy and motivated despite rising costs.
• Flexible recruitment solutions – whether you need temporary staff to bridge gaps or a long-term hiring strategy, we’ve got you covered.

As one of the UK’s leading recruitment partners, we have a dedicated Employment Law Hub to help you cut through the noise with clear, practical guidance on employment law that you can rely on. If you need advice, a recruitment plan, or just want to talk about changes for your business, we’re here to help.

Get in touch today, and let’s make a plan that works for you!