Reminder: National Living Wage Increases - 1st April
From the 1st April 2025, the National Living Wage will rise to 12.21 for those over the age of 21. This marks a 6.7 percentage increase on last year. The Government intends to eventually remove age bands for all adults so that the NLW is the same for everyone over 18. It is a legal obligation for employers to pay workers the correct wage rate, so SGF encourages businesses to prepare for these changes in advance of April.
However, SGF recognise that these increases to the NLW and NMW will have real implications for convenience retailers who are trying run viable, sustainable businesses during these challenging times and will continue raise these concerns with government, politicians and the Low Pay Commission (LPC), the independent body which advises the Government on the levels of the National Minimum Wage (NMW).
In April, SGF will release an updated True Cost of Employment publication in conjunction with the University of Stirling. This publication highlights the real cost of the NLW for employers, when taking into associated costs for employers such as Statutory Sick Pay and NI costs. Last year’s version found that while the NLW was set at £11.44 for those over 21, the True Cost of Employment for employers was £15.39.
SGF will use this document to highlight the difficulties that retailers face as a result of increases to the NLW in the LPC’s consultation for 2025.
You can read more on this on the UK Government website here.