As of April 2025, the National Minimum Wage (NMW) is increasing, which is great news for many UK workers. However, it also places new responsibilities on businesses, especially those in the property industry, to ensure compliance and maintain employee satisfaction.
What Are the New Rates?
Here’s how the NMW will change from 1 April 2025, along with annualised salaries:
- Aged 21 and over: £12.21/hour (£25,396.80 annually for a 40-hour work week)
- Aged 18 to 20: £10.00/hour (£20,800 annually for a 40-hour work week)
- Under 18s: Rate yet to be confirmed
For example, an employee working 40 hours per week at £12.21 will see an annual salary increase of £1,601.60, boosting their earnings from £23,795.20 to £25,396.80.
Employer Responsibilities: Compliance Matters
Employers must ensure that commission-based roles are structured so that employees earn at least the NMW for their contracted hours. This applies even if commission earnings fall short of expectations.
ACAS Advises: Commission and the National Minimum Wage
“When calculating whether an employee has been paid the National Minimum Wage, commission payments can be included.
An employee’s total pay, including commission, must give them the minimum wage each time they’re paid.
If an employee has not made enough commission to earn the minimum wage, the employer must top up the employee’s pay.”
There is no opt out to NMW. It has to be paid
Therefore, it seems that employers must put in a monthly guaranteed level of commission to effectively “top up” the NMW.
Property Industry Recruitment Advice
At ProFind Property Recruitment, we recommend that all jobs with a basic salary below the NMW be advertised transparently to reflect the changes.
To ensure compliance, companies should introduce a guaranteed commission structure. For example, if a base salary is £22K, the contract should reflect guaranteed commission of £3,396.80 annually (paid as £283.06 per month) with normal commission paid on top. This ensures employees are contractually guaranteed at least the NMW.
Here’s an example of how a job package could be advertised to show compliance:
- Basic Salary: £22,000
- Guaranteed Annual Commission: £3,400. (£3,396.80, but lets round it up!)
- Car Allowance: £2,400
- OTE: £38,000
As we in the industry all know, most of the time commission will far exceed the minimum guarantee, and quite frankly if it does not then they are most probably in the wrong job!
However, adding transparency to job advertisements not only demonstrates due diligence but also helps build trust with candidates and avoids potential legal issues.
Need Recruitment Support?
If you’re hiring and need advice on structuring competitive, compliant job offers, ProFind Property Recruitment can help. We specialise in the UK property sector and understand how to align recruitment strategies with industry and regulatory changes.
📤 Email: Sally@profindrecruitment.co.uk 📞 Call: 07760 787026 / 0204 583 4941
Let’s ensure your recruitment strategy reflects market realities while attracting and retaining top talent!
