National Minimum Wage and National Insurance Increases 2025: What Employers Need to Know

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Starting April 2025, businesses across the UK must prepare for significant changes in employment costs. The National Minimum Wage (NMW) is increasing once again, alongside a rise in National Insurance Contributions (NICs). These adjustments bring financial challenges, especially for companies relying on temporary workers and flexible staffing solutions.

At Extra Workforce, we understand the impact these changes will have on your business. Our goal is to help you navigate these rising costs efficiently, ensuring compliance while maximising the value of your workforce strategy.

 

Key Changes for 2025

1. National Minimum Wage Increases

The table below highlights the NMW changes from 2024 to 2025, helping you assess the financial impact on your business:

Category 2024 Rate (£/hour) 2025 Rate (£/hour) Increase (%)
National Living Wage (21+) 11.44 12.21 6.73%
Ages 18-20 8.60 10.00 16.28%
Under 18 6.40 7.55 17.97%
Apprentices 6.40 7.55 17.97%

These adjustments align with the government’s commitment to improving wages, particularly benefiting younger workers and apprentices entering the job market.

2. National Insurance Contribution (NIC) Changes

Starting April 6, 2025, the following NICs adjustments will take effect:

Contribution Type 2024 Rate (%) 2025 Rate (%) Threshold Change Business Impact
Employer NICs 13.8% 15.0% Secondary Threshold reduced from £9,100 to £5,000 Increased employer NICs for workers earning over £5,000/year
Employee NICs 12.0% 12.0% No Change No increase for employees; contributions remain stable
Additional Rate NICs 2.0% 2.0% No Change No impact on high earners
Employment Allowance £5,000 £10,500 Increased Greater support for small businesses to offset NIC increases

While employers will face higher NIC costs, the Employment Allowance increase will provide much-needed relief to smaller businesses, helping mitigate these additional expenses.

How Extra Workforce Can Help

Adapting to these rising employment costs doesn’t have to be overwhelming. Extra Workforce, powered by our innovative online platform, offers tailored solutions to help you manage these changes effectively.

1. Compliance Made Simple

Our Compliance Monitor ensures your workforce meets all legal requirements, storing verified documents such as Right to Work checks and National Insurance compliance records. With 24/7 accessibility, our system saves time and protects your business from costly fines and penalties.

2. Smarter Workforce Planning

Our Shift Planner optimises workforce allocation, minimising unnecessary labour costs. With real-time insights into shift distribution and employee roles, you can make data-driven hiring and scheduling decisions, reducing overhead expenses.

3. Streamlined Payroll Management

With NICs increasing, accurate payroll management is more important than ever. Our Online Timesheets simplify tracking, approvals, and amendments. Extra Workforce’s payroll solutions ensure full transparency and compliance, reducing administrative burdens while safeguarding your business from payroll risks.

4. Faster and More Efficient Onboarding

Our Digital Onboarding system accelerates candidate readiness. By allowing new hires to complete training and documentation online before their first day, they can start work sooner, improving retention rates and reducing onboarding costs.

Why Choose Extra Workforce?

With rising employment costs, maximising the value of your temporary workforce is crucial. At Extra Workforce, we combine expertise, technology, and tailored solutions to support your business.

Our Key Benefits:

  • Access to a continuously refreshed talent pool, ensuring high-quality candidates.
  • Comprehensive workforce support, including monthly incentives, site visits, and wellness check-ins.
  • Expert guidance on compliance and workforce strategy to reduce employment costs.
  • A dedicated team focused on enhancing your recruitment and staffing efficiency.

Take Action Today

Don’t let rising employment costs disrupt your business operations. With Extra Workforce Recruitment, you can turn challenges into opportunities.

📞 Contact us today to discover how we can help you manage costs, stay compliant, and maintain a competitive edge.

 

Extra Workforce Construction Recruitment FAQs

Construction recruitment experts in Birmingham and the West Midlands

These FAQs explain how our security services support construction sites of all sizes across Birmingham.

This guide explains our services, processes and the expertise behind our team so you can make confident and informed decisions. If you have any questions that are not answered here, our support team is available around the clock. You can contact us by email or through our online form. Your security matters to us and we are here to help at every stage.

Cients FAQs

W recruit both contract and permanent workforce. If you are hiring contractors we can manage the process and help you navigate the necessary regulations.

We advertise your job ads on every major job board such as CV Library and Total Jobs etc, as well as our own website , and social media channels on LinkedIn, Facebook and Twitter.

Job seekers can create a complete professional profile at extraworkforce.uk website to get matched to the right opportunity. We have hundreds of professionals with completed profiles in our database.

Once you create your business profile, you can post you job ad at the website. A recruitment consultant will then be matched to you based on your needs and get in touch to discuss the vacancy further.

Our process begins with a CV review and a pre-screening call. Candidates who pass this stage proceed to a formal interview with our recruitment team for a detailed assessment.

We start charging fee if a candidate that has been introduced to you by us is employed within your company and starts working with you. Until then our service is completely free of charge.

We usually offer an industry leading guarantee period – so you are covered with a replacement, completely free of charge, should anything go wrong with our candidates.

Candidate FAQs

At Extra Workforce, the whole recruitment process is done remotely and there is no need for candidates to visit the office or hand documents and IDs. Current jobs are published on the website. After you apply for for a job a website, we invite you to complete your job application if we think you the are right fit for the vacancy. Once invited, you can complete your job application and get interviewed. afterwards.

Using a specialist, specific agency like Extra Workforce will mean you will have a consultant on your side, that understands what you want, matching you to the right opportunity and pushing to get you through the door. We will help you through the entire process to ensure you get the job you want.

Pay rates can vary depending on your sector, job type, contract length, and size of the recruiting business. We’ll always guarantee that you’ll be paid at least the National Minimum Wage.

Extra Workforce is a leading construction recruitment agency built on reputation and client focus. We leverage deep market connections to provide access to exclusive, unadvertised roles. We then manage your entire application and act as your advocate with the employer.

Holiday is accrued based on 12.07% of your basic pay. Contact the office to request a holiday.

Generally if we think that you are suitable for the role then we will invite to complete your job application within 3-5 working days. If we have not contacted you by then it could be that we felt you were unsuitable for the role. It's always a good idea to call us to double check.

You and most employees in the UK pay tax to contribute towards public services like the NHS, schools, roads, and emergency services. If you earn over the personal allowance set by the government, tax is automatically deducted from your wages through PAYE

Never! We only present your details to a client after we have spoken to you about the vacancy, the company and received your permission to do so.

We don’t provide transport as standard, so make sure to plan how you’ll get to and from work. Most of our roles are easy to get to by public transport, within walking distance.

If you have a complaint or concern, the first step is to contact your consultant. In case they need to escalate the issue to the right person or department to make sure it’s properly reviewed.

The types of jobs we offer can vary depending on demand, the season and your proximity to your workplace. We recruit for a mix of full-time and part-time roles, as well as temporary, fixed-term, and permanent positions.

We specialise in finding opportunities for construction professionals, such as labourers and traffic marshalls.

Using a recruitment agency offers significant advantages for job seekers. Their industry connections and resources can efficiently match your skills with suitable opportunities. Furthermore, they provide invaluable support by negotiating salaries and benefits on your behalf and guiding you through the entire search process. This partnership ultimately saves considerable time and effort.

Areas we cover in the West Midlands:

Wolverhampton

Willenhall

West Bromwich

Wednesbury

Walsall

Tipton

Sutton Coldfield

Stoke

Solihull

Soho

Smethwick

Shirley

Sandwell

Rowley Regis

Oldbury

Northfield

Harborne

Handsworth

Hall Green

Great Barr

Erdington

Edgbaston

Dudley

Coventry

Bournville

Birmingham

Bilston

Aston

Aldridge

Quinton