National Minimum Wage
From 1 April 2019, changes to National Minimum Wage rates become effective meaning that employers from all over the UK will be affected as employment costs increase.
From this date onwards, National Minimum Wage rates will be applicable as follows:
|25+ (National Living Wage)||£8.21|
|21 to 24||£7.70|
|18 to 20||£6.15|
|16 to 17||£4.35|
*Applicable only to apprentices aged 16 to 18 and those aged 19 or over who are in their first year. All other apprentices are entitled to the National Minimum Wage for their age.
Effective from 6 April 2019 will be a change to auto-enrolment legislation, meaning that pension contributions will have to total 8% with a minimum of 3% being paid by employers.
This change to legislation, alongside the National Living Wage increase outlined above, will contribute a double cost increase for employers throughout the country.
PM+M recommends that all employers begin preparing for the above changes as soon as possible, if they haven’t done so already, to ensure that all payroll procedures are updated and ready in time for the deadlines of 1 April 2019 and 6 April 2019.
As part of our standard payroll service, PM+M will increase contribution levels for our clients as necessary to meet the minimum requirements when the changes come into effect, unless you instruct us to issue higher contribution rates.
For further information about the changes or a discussion about how the changes may affect you, your business or your employees, please do not hesitate to get in touch with Julie Mason using the button below.