The April 2026 Minimum Wage Increase: Is Your Business Ready?
It’s that time of year again. The Christmas decorations have only just come down, but prudent local business owners are already looking ahead to the start of the new financial year.
Come 1st April 2026, the National Living Wage (NLW) and National Minimum Wage (NMW) rates will increase once again.
As a multi-award-winning agency rooted in Tameside, we know that wage increases are a balancing act. For our hard-working candidates, it’s a welcome boost to help with the cost of living. For our local employers, it’s another cost line to factor into the budget.
Here is Bennett Staff’s straight-talking guide to navigating the April 2026 uplift without the headache.
Why It Matters
The government has confirmed the new rates taking effect this April. Whether you run a warehouse in Stalybridge, a manufacturing plant in Hyde, or an office in Mossley, these changes are mandatory.
HMRC has been cracking down harder than ever on non-compliance. It’s not just about paying the right hourly rate; it’s about ensuring that deductions, uniform costs, or unpaid working time don’t accidentally dip your staff below the legal threshold.
Three Things Local Employers Need to Consider
1. The “Ripple Effect” (Wage Compression) When the floor raises, the ceiling often looks a lot closer. If the National Living Wage jumps up, your entry-level staff will be earning more. But what about the supervisors or skilled operatives who were currently earning just above that rate? If you don’t adjust their pay, the gap between “unskilled” and “skilled” roles shrinks. This can kill morale. We recommend reviewing your entire pay structure, not just the bottom line, to ensure you retain your best talent.
2. Pension & NI Contributions Remember, a rise in gross pay also means a rise in your employer National Insurance and pension contributions. When you are forecasting your cash flow for Q2 2026, make sure you aren’t just calculating the hourly difference—factor in the “hidden” on-costs too.
3. Timing is Everything The rate changes on 1st April. If your payroll period cuts across the month (e.g., 25th March to 24th April), you need to make sure your payroll software handles the split correctly. You’d be surprised how many businesses get caught out by this administrative snag!
For Our Candidates: Know Your Worth
If you are currently looking for work or working in a temporary role, you will see this increase reflected in your pay for pay reference periods starting on or after 1st April.
- Check your payslip: Ensure the new rate has been applied correctly.
- Talk to us: If you feel you aren’t being paid correctly, our team is always here to offer confidential advice.
How Bennett Staff Can Help
We pride ourselves on being the “people people”. Part of that promise is removing the stress for our clients.
- For our Temporary Staff clients: You don’t need to worry about the admin. We handle the payroll, ensuring all our temps are paid the correct new rates, with all NI and holiday pay calculated automatically. You just get one simple invoice.
- For our Permanent Recruitment clients: Unsure where to pitch a salary for a new vacancy? We have our finger on the pulse of the local Tameside job market. We can benchmark your salaries against other local competitors to ensure you are offering an attractive package that secures the best talent.
Let’s Get Sorted for April
Don’t leave it until the last week of March. If you need advice on staffing costs or want to discuss how the wage increase affects your recruitment plans for 2026, pop into our Hyde office or give us a call.
Call the team on 0161 368 5511 or email info@bennettstaff.co.uk