{"id":47820,"date":"2026-02-19T08:25:13","date_gmt":"2026-02-19T08:25:13","guid":{"rendered":"https:\/\/employmenthero.com\/uk\/?p=47820"},"modified":"2026-02-19T08:25:17","modified_gmt":"2026-02-19T08:25:17","slug":"statutory-pay-for-retention","status":"publish","type":"post","link":"https:\/\/employmenthero.com\/uk\/blog\/statutory-pay-for-retention\/","title":{"rendered":"Minimum Wage &amp; Statutory Pay Increases: Turn Compliance Into a People Win"},"content":{"rendered":"\n<div class=\"wp-block-group alignfull blog-template-header has-neutral-100-background-color has-background has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-bottom:var(--wp--preset--spacing--16)\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\"><div style=\"--bb--crumb-gap:.4em;\" class=\"blog-template-breadcrumb wp-block-employmentherocom2025-breadcrumb-block\"><nav role=\"navigation\" 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9.44693666,8.24224316 C8.94677511,7.81302264 8.20254916,7.8816073 7.78481199,8.39527139\" id=\"Fill-4\" fill=\"#000000\" mask=\"url(#mask-4)\"><\/path> <\/g> <\/g> <\/g> <\/g> <\/svg> \n    <\/span>\n            <span class=\"eh-social-sharing-button__copied_text\">\n            URL copied for sharing!        <\/span>\n    <\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group has-global-padding is-content-justification-left is-layout-constrained wp-container-core-group-is-layout-5 wp-block-group-is-layout-constrained\"><h1 class=\"blog-template-title wp-block-post-title\">Minimum Wage &amp; Statutory Pay Increases: Turn Compliance Into a People Win<\/h1><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group is-layout-flex wp-container-core-group-is-layout-7 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-query wp-block-hosts-query has-global-padding is-content-justification-left is-layout-constrained wp-container-core-query-is-layout-1 wp-block-query-is-layout-constrained\"><\/div>\n\n\n\n<div class=\"wp-block-group blog-template-meta-row is-layout-flex wp-container-core-group-is-layout-6 wp-block-group-is-layout-flex\">\n<p style=\"font-size:var(--wp--preset--font-size--sm);\" class=\"wp-block-employmentherocom2025-custom-post-date\">\n    <span>Last Updated<\/span>&nbsp;<time datetime=\"2026-02-19T08:25:17+00:00\">Feb 19, 2026<\/time>\n<\/p>\n\n\n<p class=\"has-sm-font-size\" style=\"border-left-color:var(--wp--preset--color--neutral-700);border-left-width:1px;padding-left:var(--wp--preset--spacing--2)\"><\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull blog-image-container has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-image aligncenter size-full is-resized blog-template-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/smiling-bakery-worker-holding-croissant.png\" alt=\"A smiling bakery worker in an apron holding a fresh croissant in a sunlit cafe.\" class=\"wp-image-47822\" style=\"aspect-ratio:16\/9;object-fit:cover;width:864px\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/smiling-bakery-worker-holding-croissant.png 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/smiling-bakery-worker-holding-croissant-300x225.png 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/smiling-bakery-worker-holding-croissant-768x576.png 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/smiling-bakery-worker-holding-croissant-440x330.png 440w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/02\/smiling-bakery-worker-holding-croissant-512x384.png 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n\n<div style=\"height:66px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:30%\">\n<div class=\"wp-block-group sticky-side-panel is-vertical is-content-justification-stretch is-layout-flex wp-container-core-group-is-layout-11 wp-block-group-is-layout-flex wp-container-2 is-position-sticky\">\n<p class=\"has-lg-font-size\" style=\"border-bottom-color:var(--wp--preset--color--neutral-200);border-bottom-width:0.1rem;padding-top:var(--wp--preset--spacing--4);padding-bottom:var(--wp--preset--spacing--4)\"><strong>Contents<\/strong><\/p>\n\n\n\n<div class=\"content-single-table-content\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:70%\">\n<div id=\"content-wrapper\" class=\"wp-block-group content-wrapper has-global-padding is-layout-constrained wp-container-core-group-is-layout-12 wp-block-group-is-layout-constrained\" style=\"padding-bottom:var(--wp--preset--spacing--4)\">\n<p class=\"has-paragraph-2-m-font-size\">For many HR leaders and business owners, every April means only one thing: the annual scramble to update payroll for the new tax year. It\u2019s easy to view statutory pay increases as just another administrative headache, a mandatory box to tick so you don\u2019t fall foul of the law.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">But what if you rethink the approach?<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Instead of treating these updates as a compliance chore, savvy leaders are using this moment as a powerful opportunity for engagement. By positioning pay updates strategically, you can boost morale, reinforce fairness and strengthen your team&#8217;s commitment to the business. Here\u2019s how to turn a routine legal requirement into a genuine people win.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The current landscape of minimum wage and statutory pay increases<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">The cost of living is still a major talking point at dinner tables across the UK. When the government announces changes to the <a href=\"https:\/\/employmenthero.com\/uk\/news\/how-real-living-wage-affects-young-workers\/\">National Living Wage (NLW)<\/a> and National Minimum Wage (NMW), employees pay attention.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Recent increases have been significant, aiming to keep pace with inflation. For a business with 50 or 100 employees, these changes can have a substantial impact on the bottom line. But beyond the spreadsheet, there&#8217;s also a human element.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Thousands of workers across the country will see their pay packets change this April. For your employees, this isn&#8217;t just a statutory update; it\u2019s about their livelihood. If you simply process the numbers silently, you miss a massive opportunity to connect with your workforce on a topic that matters deeply to them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why compliance should be more than a legal requirement<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Treating pay updates as a &#8220;tick-box&#8221; exercise is a missed opportunity. You update the payslip, maybe send a generic email, and move on.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">If employees only hear about wage increases from the news and not from you, they might wonder if you\u2019re doing the bare minimum because you have to, not because you value them.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">On the other hand, aligning pay increases with your company culture transforms the narrative. It shows you aren&#8217;t just complying with the law; you are committed to fair pay. Companies that proactively communicate these changes see a boost in trust. It signals that the business is stable, organised and actually cares about whether its people can pay their bills.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Strategic HR approaches to statutory pay increases<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">So, how do you move from &#8220;compliance chore&#8221; to &#8220;HR strategy&#8221;? It starts with how you frame the conversation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Communication strategies<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Don\u2019t let the payslip do the talking. A silent update is a wasted opportunity.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Be transparent and get ahead of the April deadline. Send out communications explaining exactly what is changing and why. If the increase is purely statutory, be honest about it, but frame it positively.<\/p>\n\n\n\n<ul class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li><strong>A standard approach might look like:<\/strong> &#8220;Your pay has been updated to meet government requirements.&#8221;<\/li>\n\n\n\n<li><strong>But a better approach may look like:<\/strong> &#8220;We are committed to ensuring fair pay for all our team members. In line with the new National Living Wage rates, we are updating salaries effective from 1st April.&#8221;<\/li>\n<\/ul>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Even better, if you can afford to pay slightly above the statutory minimum, shout about it. It differentiates you from competitors who are merely toeing the line, and may influence <a href=\"https:\/\/employmenthero.com\/uk\/blog\/employment-hero-retain-top-talent\/\">employees considering other opportunities.<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Linking pay increases to employee engagement<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Fairness is a huge driver of employee engagement. When the gap between the lowest-paid and highest-paid shrinks, morale often dips.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Use this time to review your entire pay structure, not just the roles affected by the minimum wage. If the floor rises, what happens to the people just above it? This is known as &#8220;pay compression.&#8221; If a supervisor is suddenly earning only pennies more than a new starter, you\u2019re going to have an engagement problem.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Addressing this proactively, helps reinforce fairness across your business, letting people know that it isn&#8217;t just about the bottom line; it&#8217;s about showing your team that experience and responsibility are valued. Acknowledging this, even if you can\u2019t fix it all overnight, goes a long way.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Leveraging technology for compliance and engagement<\/h3>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Let\u2019s face it, manual calculations are a nightmare. If you\u2019re managing 50+ employees on spreadsheets, the risk of error during statutory updates is high, and nothing kills engagement faster than a wrong payslip.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">In fact, 84% of UK businesses have experienced payroll errors, and just over half say these are a significant, recurring challenge. How companies tackle payroll is changing\u20142 in 3 UK businesses now manage payroll in-house using software, while 1 in 3 still outsource to a third-party provider.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Yet, a third of businesses are still relying on spreadsheets or forms, opening themselves up to even greater risk and wasted time. (Source: Employment Hero commissioned research with One Poll, UK, May 2025, n=1000, business leaders\/owners in companies of 5-249 employees)<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">This is where your tech stack becomes your best friend. <a href=\"https:\/\/employmenthero.com\/uk\/solutions\/automated-payroll\/\">Modern HR and payroll software<\/a> doesn&#8217;t just automate the maths; it frees you up to focus on the strategy. Instead of spending three days wrestling with Excel, you can spend that time crafting the right communication plan for your team.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Real results prove what&#8217;s possible. <a href=\"https:\/\/employmenthero.com\/uk\/case-studies\/booksellers-association\/\">The Booksellers Association<\/a>, managing payroll and HR for a team of 45, transformed their processes using Employment Hero. By moving from manual calculations and disjointed systems to an integrated digital solution, they cut payroll processing time by a staggering 75%, saving three days every month, without paying a penny more than their old provider.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">The switch didn&#8217;t just streamline admin, it brought HR and compliance into one secure, central hub, laying the groundwork for scalable growth and better support for their team. Faster, error-free payroll and robust HR management meant more time to focus on what mattered most: serving their members and building a thriving workplace culture.<\/p>\n\n\n\n<div class=\"wp-block-buttons has-custom-font-size has-paragraph-2-m-font-size is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-link is-style-link--3\"><a class=\"wp-block-button__link has-btn-brand-background-color has-background wp-element-button\" href=\"https:\/\/employmenthero.com\/uk\/case-studies\/booksellers-association\/\">Read more about how we helped the Booksellers Association.<\/a><\/div>\n<\/div>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Tools like Employment Hero can automate these updates, ensuring you remain compliant without the stress. For many small businesses, the reality is stark. Rising wage costs don\u2019t exist in a vacuum. They\u2019re landing alongside higher National Insurance contributions, increased pension costs and soaring energy bills. It\u2019s a challenging environment that puts real pressure on margins and momentum.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">That\u2019s why a streamlined approach to compliance isn\u2019t just convenient; it\u2019s essential. Automating pay updates gives you back hours each pay cycle and protects your business against costly mistakes. This allows you to scale without the admin burden crushing your spirit (or your weekend).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The role of HR in shaping workplace culture<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">HR plays a vital role in supporting and empowering the organisation. You are the architects of culture. Statutory pay increases are a perfect time to demonstrate your values in action.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">If your company values &#8220;transparency&#8221; or &#8220;people-first,&#8221; this is your chance to prove it. Align your pay strategy with your broader organisational goals. For example, if you are pushing for better retention, use the pay review period to remind staff of the total value of their employment package: benefits, flexibility, and development opportunities, not just the hourly rate.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">When you treat financial wellbeing as a core part of your culture, you build a workforce that feels secure and supported. That\u2019s how you turn a regulatory requirement into a competitive advantage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Practical tips for HR leaders<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Ready to turn this April into a win? Here is your game plan:<\/p>\n\n\n\n<ol class=\"wp-block-list has-paragraph-2-m-font-size\">\n<li><strong>Start early:<\/strong> Don\u2019t wait until the last week of March. Run your reports now to see who is affected.<\/li>\n\n\n\n<li><strong>Check the &#8220;ripple effect&#8221;:<\/strong> Look at employees earning just above the new minimum. Do you need to adjust their pay to maintain differentials?<\/li>\n\n\n\n<li><strong>Draft your comms:<\/strong> Prepare clear, human-sounding emails or letters. Ditch the jargon.<\/li>\n\n\n\n<li><strong>Audit your tech:<\/strong> Is your current payroll system up to the task? If you are dreading the process, it might be time to look for <a href=\"https:\/\/employmenthero.com\/uk\/solutions\/payroll-compliance\/\">a scalable solution that automates compliance.<\/a><\/li>\n\n\n\n<li><strong>Train managers:<\/strong> Your line managers will be the ones fielding questions. Give them a simple FAQ sheet so they can answer confidently.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Ready to turn pay rises into a win with Employment Hero?<\/h2>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">Statutory pay increases don\u2019t have to be a headache. They are a yearly opportunity to reinforce trust, demonstrate fairness and engage your team.<\/p>\n\n\n\n<p class=\"has-paragraph-2-m-font-size\">By shifting your mindset from &#8220;compliance&#8221; to &#8220;culture,&#8221; you can turn a mandatory update into a moment that strengthens your business. Don\u2019t let the opportunity slip by. Plan strategically, communicate openly and use the tools available to make the process seamless.Ready to make compliance easier? <a href=\"https:\/\/employmenthero.com\/uk\/products\/payroll-software\/\">Explore how Employment Hero can help you automate pay updates<\/a> and focus on what really matters, your people.<\/p>\n\n\n\n<style>\n.content-wrapper li > ul li {padding-bottom:0.75rem!important;}\n.content-wrapper li:last-child > ul li {padding-bottom:0!important;}\n.eh-faq__container {flex-direction:column!important;}\n@media screen and (min-width: 1441px) {\n\u00a0.eh-faq__content {\n\u00a0max-width: 904px!important;\n\u00a0min-width: 715px!important;\n\u00a0}\n}\n.eh-faq {padding:0px 0px 24px 0px!important;}\n<\/style>\n\n\n\n<div class=\"wp-block-employmentherocom2025-faq eh-faq eh-faq__bg-light\"><div class=\"eh-faq__container\"><div class=\"eh-faq__header\"><h2 class=\"eh-faq__title\">FAQs<\/h2><p class=\"eh-faq__subtitle\"><\/p><\/div><div class=\"eh-faq__content\">\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771424868622\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771424868622\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">How do statutory pay increases affect small businesses?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p class=\"has-paragraph-2-m-font-size\">For growing businesses, statutory increases can impact cash flow and budget planning. However, they also provide a chance to improve retention. The cost of replacing staff often outweighs the cost of wage increases, making fair pay a smart retention strategy.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771424868630\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771424868630\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">What happens if I don\u2019t update payroll in time for the new rates?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p class=\"has-paragraph-2-m-font-size\">Failing to pay the correct National Minimum Wage is a criminal offence. It can lead to heavy fines, being named and shamed by the government, and significant reputational damage. Using automated payroll software helps mitigate this risk.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771424901027\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771424901027\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">Can I use benefits to offset the minimum wage increase?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p class=\"has-paragraph-2-m-font-size\">No. The National Minimum Wage must be paid in money. Benefits in kind (like meals or transport) cannot usually count towards minimum wage pay, with the specific exception of accommodation in some circumstances.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-employmentherocom2025-simple-accordion eh-simple-accordion\"><input type=\"checkbox\" id=\"accordion-1771424928887\" class=\"eh-simple-accordion__checkbox\"\/><label for=\"accordion-1771424928887\" class=\"eh-simple-accordion__header\"><h3 class=\"eh-simple-accordion__title\">What are the benefits of using HR software for compliance?<\/h3><span class=\"eh-simple-accordion__icon\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M10.3966 3.60341C10.3966 2.71788 11.1145 2 12 2C12.8855 2 13.6034 2.71788 13.6034 3.60341V10.3966H20.3966C21.2822 10.3966 22 11.1145 22 12C22 12.8856 21.2822 13.6034 20.3966 13.6034H13.6034V20.3966C13.6034 21.2822 12.8855 22 12 22C11.1145 22 10.3966 21.2822 10.3966 20.3966V13.6034H3.6034C2.71786 13.6034 2 12.8856 2 12C2 11.1145 2.71786 10.3966 3.6034 10.3966H10.3966V3.60341Z\" fill=\"currentColor\"><\/path><\/svg><\/span><\/label><div class=\"eh-simple-accordion__content\"><div class=\"eh-simple-accordion__inner\">\n<p class=\"has-paragraph-2-m-font-size\">HR software automates complex calculations, ensures you are using the latest tax tables, and reduces the risk of human error. It saves significant administrative time, allowing HR leaders to focus on strategy and employee support.<\/p>\n<\/div><\/div><\/div>\n<\/div><\/div><\/div>\n<script type=\"application\/ld+json\">{\n    \"@context\": \"https:\/\/schema.org\/\",\n    \"@type\": \"FAQPage\",\n    \"mainEntity\": [\n        {\n            \"@type\": \"Question\",\n            \"name\": \"How do statutory pay increases affect small businesses?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>For growing businesses, statutory increases can impact cash flow and budget planning. However, they also provide a chance to improve retention. The cost of replacing staff often outweighs the cost of wage increases, making fair pay a smart retention strategy.<\/p>\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What happens if I don\\u2019t update payroll in time for the new rates?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>Failing to pay the correct National Minimum Wage is a criminal offence. It can lead to heavy fines, being named and shamed by the government, and significant reputational damage. Using automated payroll software helps mitigate this risk.<\/p>\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"Can I use benefits to offset the minimum wage increase?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>No. The National Minimum Wage must be paid in money. Benefits in kind (like meals or transport) cannot usually count towards minimum wage pay, with the specific exception of accommodation in some circumstances.<\/p>\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What are the benefits of using HR software for compliance?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>HR software automates complex calculations, ensures you are using the latest tax tables, and reduces the risk of human error. It saves significant administrative time, allowing HR leaders to focus on strategy and employee support.<\/p>\"\n            }\n        }\n    ]\n}<\/script><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull is-style-default has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-global-padding is-layout-constrained wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--20);padding-bottom:var(--wp--preset--spacing--20)\">\n<div class=\"wp-block-group is-content-justification-space-between is-layout-flex wp-container-core-group-is-layout-13 wp-block-group-is-layout-flex\" style=\"margin-bottom:var(--wp--preset--spacing--10)\">\n<h3 class=\"wp-block-heading\">Related Resources<\/h3>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-link-arrow is-style-link-arrow--4\"><a class=\"wp-block-button__link has-btn-brand-background-color has-background wp-element-button\" href=\"\/resources\/?topic%5B0%5D%5B0%5D=Product\">View all<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-query blog-3-col-query-loop is-layout-flow wp-block-query-is-layout-flow\"><ul class=\"columns-3 alignfull wp-block-post-template is-layout-grid wp-container-core-post-template-is-layout-1 wp-block-post-template-is-layout-grid\"><li class=\"wp-block-post post-49783 resources type-resources status-publish has-post-thumbnail hentry resource-type-guides-and-playbooks\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-16 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:auto; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-experience-platform-guide\/\" target=\"_self\"  ><img loading=\"lazy\" decoding=\"async\" width=\"1728\" height=\"1014\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Employee_Experience_Platforms_Guide_UK.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"What Is an Employee Experience Platform? A Complete Guide for UK Businesses\" style=\"width:100%;height:100%;object-fit:fill;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Employee_Experience_Platforms_Guide_UK.webp 1728w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Employee_Experience_Platforms_Guide_UK-300x176.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Employee_Experience_Platforms_Guide_UK-1024x601.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Employee_Experience_Platforms_Guide_UK-768x451.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Employee_Experience_Platforms_Guide_UK-1536x901.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Employee_Experience_Platforms_Guide_UK-864x508.webp 864w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Employee_Experience_Platforms_Guide_UK-440x258.webp 440w\" sizes=\"auto, (max-width: 1728px) 100vw, 1728px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group is-vertical is-nowrap is-layout-flex wp-container-core-group-is-layout-15 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-14 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><img decoding=\"async\" class=\"wp-block-post-terms-icon\" width=\"20\" height=\"20\" alt=\"icon-blog\" loading=\"lazy\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2024\/02\/Blog.png\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/guides-and-playbooks\/\" rel=\"tag\">Guides and Playbooks<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-experience-platform-guide\/\" target=\"_self\" >What Is an Employee Experience Platform? A Complete Guide for UK Businesses<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-2\"><p class=\"wp-block-post-excerpt__excerpt\">Simplify HR and payroll with our employee experience platform guide for UK businesses. Improve engagement and compliance. Download your free&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-experience-platform-guide\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: What Is an Employee Experience Platform? A Complete Guide for UK Businesses<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-experience-platform-guide\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><li class=\"wp-block-post post-49777 resources type-resources status-publish has-post-thumbnail hentry resource-type-guides-and-playbooks\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-19 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:auto; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/outsourced-payroll-guide\/\" target=\"_self\"  ><img loading=\"lazy\" decoding=\"async\" width=\"1728\" height=\"1014\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Oursourced_Payroll_Guide_UK.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Outsourced Payroll UK: Complete Guide for UK Businesses\" style=\"width:100%;height:100%;object-fit:fill;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Oursourced_Payroll_Guide_UK.webp 1728w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Oursourced_Payroll_Guide_UK-300x176.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Oursourced_Payroll_Guide_UK-1024x601.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Oursourced_Payroll_Guide_UK-768x451.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Oursourced_Payroll_Guide_UK-1536x901.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Oursourced_Payroll_Guide_UK-864x508.webp 864w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/Oursourced_Payroll_Guide_UK-440x258.webp 440w\" sizes=\"auto, (max-width: 1728px) 100vw, 1728px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group is-vertical is-nowrap is-layout-flex wp-container-core-group-is-layout-18 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-17 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><img decoding=\"async\" class=\"wp-block-post-terms-icon\" width=\"20\" height=\"20\" alt=\"icon-blog\" loading=\"lazy\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2024\/02\/Blog.png\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/guides-and-playbooks\/\" rel=\"tag\">Guides and Playbooks<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/outsourced-payroll-guide\/\" target=\"_self\" >Outsourced Payroll UK: Complete Guide for UK Businesses<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-4\"><p class=\"wp-block-post-excerpt__excerpt\">Master your pay runs with our outsourced payroll UK guide. Learn how to save 120 hours a year and stay&hellip; <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/resources\/outsourced-payroll-guide\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: Outsourced Payroll UK: Complete Guide for UK Businesses<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/resources\/outsourced-payroll-guide\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><li class=\"wp-block-post post-49693 resources type-resources status-publish has-post-thumbnail hentry resource-type-guides-and-playbooks\">\n\n<div class=\"wp-block-group has-border-color has-neutral-100-border-color has-white-background-color has-background is-vertical is-layout-flex wp-container-core-group-is-layout-22 wp-block-group-is-layout-flex\" style=\"border-width:1px;min-height:100%\"><figure style=\"aspect-ratio:auto; padding-bottom:0;padding-top:0;margin-bottom:0;\" class=\"wp-block-post-featured-image\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-lifecycle\/\" target=\"_self\"  ><img loading=\"lazy\" decoding=\"async\" width=\"1728\" height=\"1014\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/uk-employee-lifecycle-checklist-thumbnail.webp\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"The Ultimate Guide to the Employee Life Cycle\" style=\"width:100%;height:100%;object-fit:fill;\" srcset=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/uk-employee-lifecycle-checklist-thumbnail.webp 1728w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/uk-employee-lifecycle-checklist-thumbnail-300x176.webp 300w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/uk-employee-lifecycle-checklist-thumbnail-1024x601.webp 1024w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/uk-employee-lifecycle-checklist-thumbnail-768x451.webp 768w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/uk-employee-lifecycle-checklist-thumbnail-1536x901.webp 1536w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/uk-employee-lifecycle-checklist-thumbnail-864x508.webp 864w, https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2026\/04\/uk-employee-lifecycle-checklist-thumbnail-440x258.webp 440w\" sizes=\"auto, (max-width: 1728px) 100vw, 1728px\" \/><\/a><\/figure>\n\n\n<div class=\"wp-block-group is-vertical is-nowrap is-layout-flex wp-container-core-group-is-layout-21 wp-block-group-is-layout-flex\" style=\"margin-top:0;padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-20 wp-block-group-is-layout-flex\"><div style=\"font-style:normal;font-weight:600\" class=\"taxonomy-resource-type eh-resource-type wp-block-post-terms\"><img decoding=\"async\" class=\"wp-block-post-terms-icon\" width=\"20\" height=\"20\" alt=\"icon-blog\" loading=\"lazy\" src=\"https:\/\/employmenthero.com\/uk\/wp-content\/uploads\/sites\/2\/2024\/02\/Blog.png\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/guides-and-playbooks\/\" rel=\"tag\">Guides and Playbooks<\/a><\/div>\n\n<h3 class=\"wp-block-post-title\"><a href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-lifecycle\/\" target=\"_self\" >The Ultimate Guide to the Employee Life Cycle<\/a><\/h3>\n\n<div class=\"wp-block-post-excerpt has-text-color has-contrast-2-color has-small-font-size wp-container-content-6\"><p class=\"wp-block-post-excerpt__excerpt\">Learn the full scope of the employee life cycle and how it impacts recruitment, onboarding and retention. <\/p><\/div><\/div>\n\n\n<a style=\"font-style:normal;font-weight:600;\" class=\"wp-elements-9dfcbcb7662772ecb2d671e8976a6c51 wp-block-read-more has-text-color has-violet-500-color\" href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-lifecycle\/\" target=\"_self\">Read more<span class=\"screen-reader-text\">: The Ultimate Guide to the Employee Life Cycle<\/span><\/a><\/div>\n<\/div>\n<a href=\"https:\/\/employmenthero.com\/uk\/resources\/employee-lifecycle\/\" target=\"_self\" class=\"group-block-link\"><\/a>\n<\/li><\/ul><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how HR leaders can transform statutory pay increases into a strategic opportunity to boost morale, fairness and engagement.<\/p>\n","protected":false},"author":430,"featured_media":47822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lite_auth_enabled":false,"_lite_auth_trigger_method":"scroll","_lite_auth_scroll_percent":25,"_lite_auth_click_element_query":"","exclude_from_algolia":false,"reading_time":"6 min read","display_reading_time":false,"download_content_type":"","download_file":"","download_url":"","download_cta_label":"","footnotes":""},"categories":[287],"tags":[],"resource-type":[157],"topic":[],"industry":[],"class_list":["post-47820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised","resource-type-blog"],"_links":{"self":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/47820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/users\/430"}],"replies":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/comments?post=47820"}],"version-history":[{"count":1,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/47820\/revisions"}],"predecessor-version":[{"id":47823,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/posts\/47820\/revisions\/47823"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/media\/47822"}],"wp:attachment":[{"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/media?parent=47820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/categories?post=47820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/tags?post=47820"},{"taxonomy":"resource-type","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/resource-type?post=47820"},{"taxonomy":"topic","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/topic?post=47820"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/employmenthero.com\/uk\/wp-json\/wp\/v2\/industry?post=47820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}