National Minimum Wage Increases: What Umbrella Companies Need to Know

The government has confirmed updated National Living Wage (NLW) and National Minimum Wage (NMW) rates. Umbrella companies must ensure their payroll systems are updated before the new rates take effect.

Updated Rates

The new rates represent the largest single increase in percentage terms, reflecting the government’s commitment to making work pay:

• National Living Wage (21+): Increased to reflect cost of living pressures
• 18–20 rate: Increased with a narrowing differential to the NLW
• 16–17 rate: Increased in line with Low Pay Commission recommendations
• Apprentice rate: Increased to attract more young people into apprenticeships

Key Actions for Umbrella Companies

1. Update payroll system rate tables before the implementation date
2. Review all current worker assignments to ensure compliance
3. Check that margin calculations still work with updated rates
4. Communicate changes to workers and agency partners
5. Update KID templates with new pay illustrations

How PaySentry Helps

PaySentry’s payslip auditing automatically checks against current NMW/NLW rates, flagging any underpayments immediately.