As the UK enters a new financial year, rising employment costs—including higher national minimum wages and NIC increases—are reshaping hiring strategies. While pay rises may seem like good news for workers, for 97.7% of UK businesses (with fewer than 50 employees), it could mean tougher decisions on recruitment and headcount.

The challenge: Rising employment costs

• Employers’ NICs jump from 13.8% to 15%
• Earnings threshold for NICs drops from £9,100 to £5,000, further driving up payroll costs
• Many businesses are cutting jobs or slowing hiring to offset rising expenses

While budget changes are beyond your control, how you adapt isn’t—you can take proactive steps to keep your business growing and expanding.

Offshoring with Deployed: A Smarter Hiring Strategy

With in-house hiring more expensive than ever, UK companies need cost-effective ways to scale. Offshoring to the Philippines lets you cut costs, grow fast, and maintain quality—all while staying agile and competitive.

Why UK businesses are offshoring to the Philippines

Significant cost savings

Labour costs in the Philippines are 60-70% lower than in the UK, allowing businesses to hire top talent at a fraction of the cost. Beyond salaries, companies save on office space, utilities, and employee benefits, making offshoring a financially smart strategy.

Skilled & English proficient workforce

The Philippines is home to highly educated professionals in industries like customer service, IT, finance, and back-office support. With English as the primary business language, UK companies experience seamless collaboration with offshore teams.

Scalability & Flexibility

Offshoring removes local hiring constraints, enabling businesses to scale operations quickly. Whether you need to expand teams, strengthen IT capabilities, or streamline admin tasks, offshoring adapts to your business needs.

Timezone Advantage

With a 7-hour time difference, the Philippines extends business hours, ensuring round-the-clock support when needed. Many offshore teams work UK hours, making workflow integration effortless.

Government-backed offshoring-outsourcing industry

The Philippine government actively supports the offshoring-outsourcing sector through tax incentives, infrastructure investments, and digital transformation initiatives—creating a stable, business-friendly environment for UK companies.

2025 is the year to prepare!

While some employment law changes are happening now, 2025 is the ‘get ready’ year. Many of the biggest employment law shifts—such as flexible working by default, statutory pay increases, equality & pay transparency, and other regulations—are still in consultation and could take effect in 2026.

These changes won’t just impact salary and contributions—they could reshape workforce management entirely. Rising employment costs and new regulations mean businesses must start planning now to stay ahead.

At Deployed, we’ve spent over 10 years helping businesses reduce costs, retain staff, and streamline workforce management. From hiring and onboarding to long-term retention, we take the burden off your shoulders—so you can focus on growing your business.

Ready to future-proof your workforce?

Schedule a discovery call with Deployed today and start building your offshore team.