On 29 October 2024, the Government announced that the National Living Wage (NLW) will increase from 1 April 2025 as follows:
| NMW Rate | Increase (£) | Percentage Increase | |
| National Living Wage (21 and over) | £12.21 | £0.77 | 6.7 |
| 18-20 Year Old Rate | £10.00 | £1.40 | 16.3 |
| 16-17 Year Old Rate | £7.55 | £1.15 | 18.0 |
| Apprentice Rate | £7.55 | £1.15 | 18.0 |
| Accommodation Offset | £10.66 | £0.67 | 6.7 |
The planned increase in the National Living Wage (NLW) from £11.90 to £12.21 per hour in April 2025 will result in higher weekly wages for workers.
Many industries will be impacted by this increase, especially since it has only been a year on from the April 2024 changes. To provide a clear picture of the impact of this increase, let’s break down how the wage increase will affect employees within the racing industry under SOC Code 6129 Animal Care Services Occupations, working a 47-hour week.
Under the current NLW of £11.90 per hour:
So, at the current rate, a worker in SOC Code 6129 working 47 hours per week will earn £559.30 before taxes.
With the planned increase in the NLW to £12.21 per hour in April 2025:
Therefore, in April 2025, a worker in SOC Code 6129 working 47 hours per week will earn £573.87 before taxes.
Here’s a quick comparison of the weekly pay before tax:
So, workers in SOC Code 6129 who are working 47 hours per week will see an increase of £14.57 in their weekly pay when the NLW rises to £12.21 per hour in April 2025.
Let’s now look at how this increase will impact annual earnings, assuming the worker works 47 hours per week for 52 weeks a year (no time off):
So, the worker would earn £710.64 more per year as a result of the increase in the NLW to £12.21 per hour.
The gross pay increase of £14.57 per week (or £710.64 per year) is the amount the worker would receive before tax and National Insurance contributions. The actual take-home pay increase would be lower, as income tax and National Insurance (NI) contributions would be deducted. The worker’s net pay will depend on the specific tax code and NI class.
However, if we assume the worker falls under the standard income tax and National Insurance bands, they can expect to see a moderate increase in their net pay due to the higher wage rate, though the exact amount will depend on individual circumstances (e.g., tax code, any deductions, pension contributions, etc.).
Workers in SOC Code 6129 will see an increase in both their weekly and annual earnings as the National Living Wage rises, helping to offset the ongoing pressures of inflation and the cost of living. The exact impact will vary based on individual tax circumstances, but the increase represents a clear financial benefit for those working in this occupation.
If you sponsor overseas workers or are thinking about sponsoring and unsure how these changes will affect you, please don't hesitate to contact our immigration specialists at info@migrate-uk.com or tel: 01235 645 800.