As of 1st April 2025, the National Living Wage (NLW) is set to rise to £12.21 per hour for workers aged 21 and over, marking a 77p increase from the current rate. This significant change will impact both employers and workers across various industries, particularly those relying on hourly-paid staff. In this blog, we’ll explain how businesses can prepare for the upcoming changes and ensure compliance, and how workers will benefit from the increase.

What Is the National Living Wage Increase?

The National Living Wage is a minimum hourly wage set by the government for all workers aged 21 and over. This rate is reviewed annually and adjusted to reflect the rising cost of living. Starting in April 2025, the NLW will rise to £12.21, providing an extra 77p per hour for millions of workers.

How the NLW Increase Impacts Employers

For employers, the NLW increase presents both challenges and opportunities. Here’s what businesses need to consider:

1. Increased Labour Costs
   For businesses with a significant number of hourly-paid workers, the NLW rise will lead to an increase in labour costs. This could impact profit margins, especially for industries with thin margins such as retail, hospitality, and logistics.

2. Ensuring Compliance
   Employers must ensure they’re fully compliant with the new NLW rate. Failing to meet the minimum wage requirements can result in penalties, reputational damage, and legal consequences. It’s crucial to review pay structures and adjust payroll processes ahead of time.

3. Staff Retention & Morale
   While the wage increase could increase operational costs, it could also boost staff morale and retention. A higher wage can help reduce turnover, improve productivity, and create a more positive work environment.

4. Plan Early
   To manage this change effectively, businesses need to start planning now. At PROMAN, we work closely with our clients to ensure they’re prepared for the NLW rise by providing expert guidance, updating pay rates, and developing tailored plans.

How the NLW Increase Benefits Workers

For workers, the NLW increase is great news. The pay rise will help improve living standards, particularly in areas where the cost of living is high. It will also benefit workers in sectors that often rely on minimum wage employees, such as retail, hospitality, and manufacturing.

With PROMAN managing the transition behind the scenes, candidates won’t need to take any action. Our seamless processes ensure that pay rates are updated correctly and on time, so workers can enjoy the benefits without any delays.
 

How PROMAN Supports Employers & Candidates with the NLW Transition

At PROMAN, we are committed to ensuring a smooth transition to the new NLW rate. We engage with our clients early to discuss the impact of the changes and help them prepare by developing tailored plans that comply with the new requirements. For our candidates, we handle everything behind the scenes, so they don’t need to worry about a thing.

If you need help navigating the National Living Wage changes, don’t hesitate to contact our expert team at PROMAN. We’re here to support you every step of the way.