Employers will see NI increase from 13.8% to 15% in April 2025, and the secondary threshold, the point at which employers start paying NI on employees wages, will come down from £9,100 to £5,000. These changes mean companies must pay more NI on their employees’ earnings.
Businesses must plan carefully in the coming months. Balancing costs while maintaining high service quality is critical for industries that rely on efficiency, compliance, and strong workforce management.
This article explores practical ways to manage the increase in NI. You’ll learn how to reduce expenses, boost productivity, and maintain employee satisfaction – all while staying ahead of rising employment costs.
Here’s What We’ll Cover:
What Employers Need to Know: Understand how these changes affect your bottom line and workforce planning.
Cost-Saving Tips: How to reduce expenses without sacrificing productivity or employee retention.
Innovative Recruitment Solutions: By re-aligning how you work with industry-specific recruiters, you can reduce costs and improve the longevity of your permanent workforce.
Success Stories Across Industries: See how businesses like yours have successfully navigated compliance challenges and rising operational costs.
By adopting the right strategies, businesses can adapt to the changes in NI contribution and turn challenges into opportunities to strengthen their operations.
The True Picture of the NI Increase
Over the past decade, National Insurance contribution rates have steadily increased, but the upcoming rise to 15% represents one of the most substantial jumps in recent history. This change is challenging, as businesses are already contending with soaring inflation, supply chain disruptions, and escalating operational expenses.
For example:
A small manufacturing firm with a payroll of £500,000 could see an additional £6,000 in annual NI costs.
A large healthcare provider with a payroll of £5 million could face an extra £60,000 in expenses – funds that could otherwise support staff training, equipment investments, or facility upgrades.
Here’s a breakdown of how the latest NI increase will affect a worker earning £30,000 per year:
| NI Rate | 2nd Threshold | Taxable Salary | Employer NIC |
| Current: 13.8% | £9,100 | £30,000 – £9,100 = £20,900 | £20,900 x 13.8% = £2,884.20 |
| New: 15% | £5,000 | £30,000 – £5,000 = £25,000 | £25,000 x 15% = £3,750 |
Cost Increase: New Cost (£3,750) – Old Cost (£2,844.20) = £905.80.
Percentage increase: £905.80 / £2,884.20 x 100 = 31.4%.
The first step is to understand the financial impact of the NI increase. The next step is to find strategies to offset these costs without sacrificing productivity, compliance, or service delivery.
Cost-Saving Tips for Businesses Facing NI Increases
The latest rise in NI contributions in April 2025 brings new business hurdles. However, with the right approach, companies can turn these challenges into opportunities for efficiency, innovation, and long-term stability.
Leverage Tech
Automation and digital solutions can reduce the burden on administrative and operational teams. Manufacturing & Plant Operations: Predictive maintenance software can reduce downtime and labour costs. Healthcare: Digital patient management systems can streamline workflows and improve efficiency. Education: AI-driven scheduling tools can optimise staff allocation and resource management.
Smart Hiring
With rising costs, recruitment becomes even more critical. By strengthening employee retention strategies, offering competitive benefits, and creating professional development opportunities, businesses can reduce turnover costs and attract high-quality talent without excessive spending.
Strong Supply Chains
Rising operational costs, including NI increases, make it crucial for businesses to negotiate better supplier agreements and explore local sourcing to reduce costs and improve efficiency.
Avoid Financial Pitfalls
Industries such as automotive and industrial manufacturing must comply with stringent employment regulations. Ensuring payroll efficiency and preventing compliance penalties can help businesses avoid additional financial strain.
How Niche Recruitment Can Help Offset Costs
Strategic hiring can significantly reduce overheads and improve operational efficiency. Instead of maintaining a more extensive permanent workforce, companies can optimise costs by hiring niche, industry-specific talent as needed.
For example, in automotive manufacturing, rather than hiring a full-time production manager at £40,000 per year, businesses can allocate responsibilities across multiple specialised contract workers:
Quality Assurance Technician: To oversee inspections and compliance checks.
Production Line Supervisor: To manage workflow efficiency and team coordination.
Maintenance Specialist: Handles equipment troubleshooting and repairs.
This approach allows businesses to adapt to market demands while managing payroll costs.
Success Stories Across Industries
Businesses trust Platinum Recruitment’s temp staffing to stay agile, efficient, and fully staffed. From covering absences to scaling for peak seasons, our flexible solutions keep operations running smoothly. Explore success stories from companies that secured the right talent – right when they needed it.
Spire Technology, one of the UK’s leading IT distributors, has found that partnering with Platinum Recruitment for temporary staffing provides a fast, reliable solution during busy periods. By working with an agency, they can quickly access skilled temporary staff without the delays associated with notice periods.
Since agency workers frequently move between short-term roles, they are ready to step in immediately, ensuring Spire can maintain seamless operations without disruption. This level of flexibility has been invaluable in managing fluctuating demand while keeping service standards high.
Want to see how flexible staffing can work for your business? See more success stories here:
How To Manage the NI Increase with Platinum’s Help
Navigating recruitment and workforce changes in 2025 can be complex, but Platinum Recruitment is here to help. With 20 years of industry experience, we provide tailored recruitment solutions that help businesses control costs while securing top talent.
Choosing us as your recruitment partner comes with significant financial and operational advantages, particularly in managing employment costs:
Transfer Liability
When you hire staff through our agency, we, not you, are responsible for paying the Employer’s National Insurance.
Instead of covering rising NI expenses, you pay a set fee for the worker’s services, helping you better control your costs and cash flow.
Hiring Options
Our temporary and fixed-term staffing solutions allow businesses to scale their workforce without increasing permanent payroll NI liabilities.
This flexibility helps you adapt to fluctuating demand while stabilising long-term employment costs.
Cut Overheads
Our in-house payroll and compliance teams handle all tax, NI, and pension contributions, ensuring full compliance with employment regulations.
By outsourcing recruitment to us, businesses can reduce HR and payroll burdens, offset some of the rising NI costs, and stay focused on core operations.
NI Increase: Key Takeaways for Your Business
Higher NI contributions don’t have to mean higher stress for your business. A proactive approach focusing on workforce flexibility, digital tools, and operational improvements can help you cut costs while ensuring compliance.
By partnering with Platinum Recruitment, you’ll gain access to the expertise, workforce solutions, and strategic support needed to succeed in 2025 and beyond.
Please fill out the short form below to discover how we can help your business navigate this transition smoothly.
