Wbg urges payroll and budget reviews

Scotland-based independent accountancy firm Wbg has advised employers to prepare their budgets and conduct a payroll review in light of recent increases in labour costs and tax changes linked to the budget.

This advice comes as there was a rise in the national living wage and national minimum wage rates in April 2025.

The national living wage, which applies to employees aged 21 and over, has seen an increase that could result in a pay rise of up to £1,400 ($1835.46) annually for those working a 35-hour week.

With the 6.7% increase, workers will now earn £12.21 per hour, allowing full-time employees to earn approximately £26 more per week, or an additional £117 per month.

For younger workers, the national minimum wage has also increased.

Individuals aged 18 to 20 will now receive £10 per hour, marking a 16.3% rise, while 16 and 17-year-olds will earn £7.55 per hour, an 18% increase.

Wbg Business Advisory department partner Mark Mulholland highlighted that these rises in labour costs are higher than inflation.

He pointed out that when combined with National Insurance increases, these changes are placing a significant financial burden on businesses.

He added: “To cope with this scenario, employers must have robust budgets in place because they need to know what these changes are costing them.

“Employers can’t afford to wait till the end of the month to discover the impact of these changes – they need to do their sums now and factor in the impact of this.

Mulholland suggests that companies allocate resources towards digital financial software.

He expressed concern that some employers might not be fully aware of the changes to the national living wage.

He recommends that businesses should review their payroll processes to ensure they are complying with legal requirements and paying their employees the correct minimum wage.

"Wbg urges payroll and budget reviews " was originally created and published by International Accounting Bulletin, a GlobalData owned brand.

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