Bridge HR blog articles

National Living and Minimum Wage, National Insurance, SSP and other increases in 2025

Written by Lee Stephens | Jan 21, 2025 10:34:57 AM

The national living and minimum wage, national insurance, SSP, and other increases will arrive in April of this year.

Employer’s National Insurance

Employers National Insurance will increase to 15% together with a reduction in the earnings thresholds to attract NI which moves down to £5000 per annum although the ‘employment allowance’ will increase to £10,500.

National Living Wage

From April, the National Living Wage (for 21 years or over) will increase to £12.21.

National Minimum Wage

The National Minimum Wage will increase by c.16% (!), giving 18-20-year-olds a rate of £10 per hour.

Apprentice rate

The Apprentice rate for under 18’s increases too, up to £7.55 per hour - that’s a c. 18% jump!

Other rates subject to increases in April include:

Statutory Maternity Pay, Maternity Allowance and Statutory Paternity Pay together with Shared Parental Leave Pay move to £187.18.

lower earnings limit

The lower earnings limit increases to £125.

Statutory Sick Pay (SSP)

Statutory Sick Pay goes up to £118.75.