With the National Living/Minimum Wage set to rise a staggering 6.7% from April 2025, hospitality businesses must enforce the new rates or face serious penalties. Owen Russell shares how a National Living/Minimum Wage review can ensure your business remains compliant.

The National Living/Minimum Wage is a statutory requirement for a minimum hourly wage to be paid to workers in the United Kingdom.  

From April 2025, the National Living/Minimum Wage rates are as follows:

• The rate for workers aged 21 and over will increase from £11.44 to £12.21

• The rate for 18-20 years olds will increase from £8.40 to £10.00

• The rate for 16-17 years olds will increase from £6.40 to £7.55

• The apprentice rate (for apprentices aged under 19 or in their first year of apprenticeship) will increase from £6.40 to £7.55 

Failure to correctly meet and operate the new rates isn't an option. If identified by HMRC, your organisation could be issued severe penalties and be named and shamed on HMRC’s website. This applies to businesses with arrears of more than £500 in National Living/Minimum Wage payments to their workforce. 

For businesses operating tronc schemes, allocations from tronc can't count towards the National Living/Minimum Wage. 

Finally, if you require your staff member (the worker) to purchase specific items, such as overalls, then any deductions made from employee pay or payments made to you (the employer) in respect of those items, will also need to be considered for National Living/Minimum Wage purposes.

How can we help?

We provide hospitality businesses with assurance by offering National Living/Minimum Wage audits. Our reviews will confirm the impact the proposed increases will have on your business, outline any concerns we may have, and advise you on the options available to ensure you meet the demands made by HMRC.  

If your organisation operates a tronc scheme, upon request, we’ll analyse your existing processes and provide a detailed report highlighting whether your arrangement correctly provides an exemption to National Insurance Contributions.