How 2025 NICs Changes Could Impact Job Seekers

With National Insurance Contribution (NICs) changes coming into effect in April 2025, many job seekers are wondering what this means for their career prospects. While these changes do not affect employee NICs rates or take-home pay, they do impact employers—which could influence hiring trends, job opportunities, and salary negotiations.

At Allstaff, we believe job seekers should be aware of how these changes could affect recruitment and employment options in 2025. This guide will break down:

✔ What NICs are and how they work for employees.

✔ Whatʼs changing in 2025 and why it matters for businesses.

✔ How the NICs increase for employers could influence hiring trends.

✔ What job seekers should consider when looking for new roles in 2025.

Whether youʼre currently employed and thinking about a job move or actively searching for your next opportunity, understanding these changes can help you plan ahead and make informed career decisions.

Understanding National Insurance Contributions (NICs)

What is National Insurance?

National Insurance (NI) is a mandatory contribution that helps fund state benefits such as:

The State Pension
The NHS
Unemployment benefits
Maternity pay and other public services

Both employees and employers pay NICs, but the 2025 changes only affect the employer’s contributions.

How Are NICs Deducted for Employees?

For most employees, NICs are automatically deducted from their salary each month. These deductions appear on your payslip under categories like:

✔ Primary NICs – The amount deducted from your wages.

✔ Secondary NICs – The amount your employer pays on your behalf (not deducted from your salary).

Important: The employee NICs rate is not changing in 2025—so your personal NICs deductions and take-home pay will remain the same unless you receive a salary increase.

Whatʼs Changing with NICs in 2025?

The 2025 NICs changes only affect employers, as the government is increasing the amount businesses must contribute.

Key Changes:

Employer NICs rate is increasing from 8% to 15%.
The secondary threshold (the point at which employers start paying NICs) is expected to be adjusted.
Employment Allowance is increasing from £5,000 to £10,500, meaning some smaller businesses will receive additional NICs relief.

What does this mean for job seekers?

Even though employees wonʼt see changes to their own NICs rates, the increased cost to employers could impact how businesses approach hiring—especially for full-time vs. temporary jobs.

How the 2025 NICs Changes Could Affect Hiring Trends

Since businesses will have to pay more in employer NICs, some companies may adjust their hiring strategies to manage payroll costs more effectively. This could mean:

More Employers Offering Temporary G Contract Roles

Some businesses may rely more on temporary workers instead of hiring full-time employees to control payroll costs.
Temporary jobs could become more common in industries like logistics, administration, and customer service.

What this means for job seekers:

Temporary work could offer more opportunities in
Some temporary jobs may transition into permanent
Using a recruitment agency (like Allstaff) can help you find stable, long-term temp

Potential Slower Salary Growth for Some Jobs

With higher NICs costs, some businesses may be more cautious about increasing salaries in the short term.
Instead of offering higher wages, employers may focus on non-salary benefits (pension contributions, bonuses, or flexible working options).

What this means for job seekers:

Look beyond just salary—consider total compensation, including benefits and
Be prepared for salary negotiations to include perks instead of large pay
Work with a recruitment agency to find roles with the best overall

Job Availability in Certain Sectors Could Shift

Some industries may slow down hiring full-time staff, while others continue to
Growing sectors (e.g., healthcare, technology, and skilled trades) may be less affected by NICs increases.

What this means for job seekers:

If job availability shifts, consider reskilling or upskilling in industries with high
Be open to flexible working arrangements if full-time roles become more
Seek guidance from recruitment specialists to find roles that match your skills and career

What Job Seekers Should Consider When Applying for Roles in 2025

If youʼre job hunting in 2025, here are some key factors to keep in mind:

Salary Negotiation

With employers facing higher payroll costs, negotiating salaries may be
Instead of just asking for higher pay, consider negotiating for benefits like:
- Additional pension contributions
- Training and development opportunities
- Remote or flexible working options

Temporary vs. Full-Time Roles

More temporary jobs could be available, providing new opportunities to gain experience or transition into a permanent role.
If youʼre unsure whether a temp role is right for you, talk to a recruitment agency to explore different options.

Understanding Total Compensation

Rather than focusing only on gross salary, consider:
Employer pension contributions
Bonuses and performance incentives
Career growth and job stability

How Allstaff Can Help Job Seekers Navigate 2025’s Job Market

At Allstaff, we understand that job seekers want security, career progression, and fair pay. With over 40 years of experience, we help candidates find roles that align with their skills, salary expectations, and career goals.

We place job seekers in full-time, temporary, and contract roles across multiple
We guide candidates through salary negotiation and help them understand job benefits
We match job seekers with employers looking for long-term

Conclusion

The 2025 NICs changes wonʼt impact employeesʼ take-home pay, but they will affect employersʼ hiring decisions. Businesses may shift towards temporary work, adjusted salary packages, or alternative hiring models to manage payroll costs.

For job seekers, this means: