For most of us, hiring and paying staff is an essential part of our business. However, keeping up-to-date with ever changing employment law which affects your employees is a time-consuming task. Thankfully we’re here to relieve the burden.
Minimum wage and living wage rates to increase
Historically, the National Minimum Wage (NMW) rates were revised every October. However in 2017 they were increased with effect from April in line with the National Living Wage (NLW) rate. Both of these are set to rise again this April.
The NMW and NLW rates are a legal requirement for all workers above compulsory school leaving age. The new hourly rates from 1 April 2018 are:
- employees aged 25 and over will increase from £7.50 to £7.83
- employees aged between 21-24 will increase from £7.05 to £7.38
- employees aged between 18-20 will increase from £5.60 to £5.90
- employees aged between 16-17 will increase from £4.05 to £4.20
- apprentices up to the age of 19 or in their first year of apprenticeship will increase from £3.50 to £3.70 (unless rate specified in apprentice training contract).
Statutory payments will also increase to the following:
- Statutory Maternity, Paternity, Adoption and Shared Parental Pay will all increase from £140.98 to £145.18 per week.
- Statutory Sick Pay will increase from £89.35 to £92.05 per week.
Changes to workplace pension schemes
The minimum contribution levels for the standard workplace pension scheme will increase with effect from 6 April 2018. The contributions now must total 5% and be made up of the following:
- employer minimum contribution 2%
- employee minimum contribution 3%
These contributions will remain in place until 5 April 2019.
Changes to the personal allowance
Changes to the personal allowance from 6 April 2018 means it is now possible to earn £162.00 per week/£702.00 per month, before any tax or National Insurance deductions are applied (based on the new standard 1185L tax code).
To accrue National Insurance credits you must receive a salary of £116.00 per week/£503.00 per month or more.
At David Allen our Employer Services team are constantly keeping up-to-date with the latest employment law updates, taking the hassle out of payroll compliance for our clients. Whether it’s outsourcing your payroll or advice on your auto enrolment responsibilities, we will help.
Call Vicki on 01228 711888 to remove the administrative burden of payroll from your business.
Posted: March 9th, 2018