Employers | National minimum wage

The new National Living Wage and National Minimum Wage rates came into force from 1 April 2025.

There were also changes to the National Insurance that employers pay from 6 April. For many salon owners, the April payroll would have represented a sizeable step up in labour costs. This is something that will need careful cash flow management and planning to navigate as the hair and beauty industry pushes through after an already challenging few years.

As a reminder, here is a quick recap of the changes.

National Minimum Wage rates

The new minimum wage rates are as follows:

Employers National Insurance changes

The percentage rate of Employers’ National Insurance (NI) that’s paid on an employee’s earnings increases to 15% (from 13.8%).

The threshold that an employee needs to be earning before any Employers’ NI is due drops to £5,000 a year. Previously this was £9,500.

If you use online payroll software, the new Employers’ NI rates should be automatically included. However, please check with your payroll software provider if you are not sure.

If you need any help using the new rates or calculating the amount of minimum wage that is due to a worker, please get in touch be emailing us on hello@thebeautyaccountant.co.uk. We would be happy to help you!

You may also find it helpful to check out the latest guidance on employees in disguise | Employment Status For Tax if you are unsure if you are operating via the correct tax structure.