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Navigating Cost Increases with Confidence
Overview
From April 2025, businesses across the UK will need to adapt to significant changes in employment costs. The National Minimum Wage (NMW) has once again increased, alongside a rise in National Insurance contributions. These adjustments bring new challenges for businesses, particularly those reliant on temporary workers.
At HRGO Recruitment, we understand the pressures these changes can place on employers. Our goal is to help you navigate these cost increases effectively, offering solutions that not only ease the burden but also deliver greater value to your temporary workforce strategy.
Key Changes for 2025
- National Minimum Wage:
The following table highlights the changes in NMW rates from 2024 to 2025, making it easier to understand the year-on-year impact:
| Category | 2024 Rate (£/hour) | 2025 Rate (£/hour) | Increase (%) |
| National Living Wage (21 and over) | 11.44 | 12.21 | 6.73% |
| Age 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 reflect the government’s commitment to enhancing living standards across various age groups. Notably, the significant increases for those under 21 and apprentices aim to support younger workers entering the workforce.
- National Insurance Contributions:
The following changes to NICs are set to take effect from April 6, 2025:
| Contribution Type | 2024 Rate (%) | 2025 Rate (%) | Threshold Change | Impact |
| Employer Contributions | 13.8 | 15.0 | Secondary Threshold reduced from £9,100 to £5,000 | Increased NICs for businesses employing workers earning over £5,000/yr |
| Employee Contributions | 12.0 | 12.0 | No Change | No increase for employees; contributions remain stable |
| Additional Rate (Over Threshold) | 2.0 | 2.0 | No Change | No change in additional rate for high earners |
| Employment Allowance | £5,000 | £10,500 | Increased | More support for small businesses, offsetting the employer NIC increase |
These changes ensure that while employers face increased contributions due to the lowered Secondary Threshold, employees’ NICs remain unchanged. The enhanced Employment Allowance provides vital relief for smaller employers, helping to mitigate these additional costs.
These increases reflect the commitment to improving workers' living standards but create an undeniable cost impact for businesses. Ensuring compliance while optimising workforce costs has never been more critical.
The HRGO Advantage
Adapting to rising employment costs doesn’t have to be daunting. HRGO Recruitment, supported by our innovative FONT platform, offers tailored solutions to help you manage these challenges effectively. Here’s how we can add value:
- Compliance Made Simple
FONT’s Compliance Monitor ensures your workforce meets all legal requirements. Verified documentation, from Right to Work checks to National Insurance compliance, is securely stored and accessible 24/7. Our transparent system saves you time and protects your business from fines and penalties.
- Smarter Workforce Planning
Through FONT’s Shift Planner, you can optimise workforce planning and minimise unnecessary costs. With shifts broken down by role and employee across the week, better demand forecasting and cost management are at your fingertips. In a climate of increased wages and contributions, every decision counts.
- Streamlined Payroll Management
With rising National Insurance contributions, managing payroll accurately and efficiently is vital. FONT’s Online Timesheets make the tracking, approval, and amending of timesheets easier than ever before. HRGO’s Payroll ensures transparency and compliance while reducing administrative burdens. Ethical payroll practices are our standard, ensuring your business is protected from risk.
- Enhanced Onboarding
Our Digital Onboarding process accelerates readiness for new hires. By completing training and documentation online before their first day, candidates can start work sooner. This approach not only saves time but also ensures compliance and enhances retention rates, reducing overall costs.
Why Choose HRGO Recruitment?
When costs rise, maximising the value of your temporary workforce is essential. At HRGO Recruitment, we blend people, processes, and technology to provide unmatched support. By partnering with us, you gain:
- Access to a constantly refreshed talent pool, ensuring quality candidates.
- Candidate support such as monthly incentives, site visits and wellness check-ins, including a return to work process.
- Expert guidance on workforce planning and compliance.
- A dedicated team focused on optimising your recruitment process.
Get in Touch
Don’t let the rising cost of employment hinder your business. With HRGO Recruitment and FONT, you can turn challenges into opportunities. Contact our team today to discover how we can help you manage costs, stay compliant, and maintain a competitive edge.