Minimum wage is increasing on 1 April 2025.
For business owners or managers, you need to be ready for the minimum wage rates increase from 1 April 2025.
The details of the increase are:
- Adult minimum wage will go up from $23.15 to $23.50 per hour.
- Starting-out and training minimum wage will go up from $18.52 to $18.80 per hour.
- All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support.
If you have not yet talked to your accountant, payroll provider or your finance/HR teams now is the time. It is also an opportunity to check your employment records, processes and systems are current.
Note the minimum wage does not apply in some situations including:
- employees under 16 years of age
- where a Labour Inspector has issued a minimum wage exemption permit to an employee who has a disability that limits them carrying out their work.
If you employ a person with a disability that significantly limits them in the job, an application can be made to the Labour Inspectorate for a minimum wage exemption permit. Permits will only be granted if they are reasonable, the employee agrees, and you have done all you can to help the employee do all parts of their job.
