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National Minimum Wage & Pensions rise from April 2019

From 1 April 2019 the minimum hourly pay rates along with the minimum contributions for auto-enrolment pensions will increase affecting both employees and employers.

First let’s look at the National Minimum Wages rates:

National Living Wage (NLW) rates (for those over 25 years old) and National Minimum Wage (NMW) rates (for those under 25 years old) will rise from 1 April 2019.

The NLW increase of 38p represents a 4.8% rise, equivalent to an annual increase of about £700 for a full-time worker.

In summary and effective 1 April 2019 the follow minimum wage rates will apply

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice *
April 2018 £7.83 £7.38 £5.90 £4.20 £3.70
April 2019 (new rates) £8.21 £7.70 £6.15 £4.35 £3.90

* The apprentice rate is for 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.

The Government has previously said it plans to raise the national living wage to at least £9 per hour by 2020.

Ensure your payroll procedures are up to date. For further details and more rates visit gov.uk

 

Pension contribution rates increase from April 2019

If you employ staff and run a pension scheme the minimum contributions rates are increasing from April 2019. This has long been the intention of The Pension Regulator (TPR) and is the last increase of “phasing”. The increases are as follows:

  • Employer minimum pension contribution 3% (from 2%), staff contribution 5% (from 3%).

If we provide your payroll services then we will of course implement the increased rates on your behalf but because this represents an increased cost for both employer and employee we highly recommend that you let your staff know in advance of this change. To do so you may like to use this TPR letter template.

Source info and more detail: http://www.thepensionsregulator.gov.uk/en/employers/phasing-increase-of-automatic-enrolment-contribution

 

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National Minimum Wage Rise from April 2018

National Living Wage (NLW) rates (for those over 25 years old) and National Minimum Wage (NMW) rates (for those under 25 years old) are to rise from 1 April 2018.

The NLW increase of 33p represents a 4.4% rise, equivalent to an annual increase of about £600 for a full-time worker.

In summary and effective 1 April 2018 the follow minimum wage rates will apply

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice *
April 2017 £7.50 £7.05 £5.60 £4.05 £3.50
April 2018 (new rates) £7.83 £7.38 £5.90 £4.20 £3.70

* The apprentice rate is for 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.

The Government has previously said it plans to raise the national living wage to £9 per hour by 2020.

Ensure your payroll procedures are up to date. For further details and more rates visit gov.uk

Enjoy saving tax?

We have two videos to help on ourYouTube-logo-full_colorchannel; and for regular tax-tips follow our blog on Google+ or click +Follow at the bottom of this page.


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National Minimum & Living Wage Rise from April 2017

National Living Wage (NLW) rates (for those over 25 years old) and National Minimum Wage (NMW) rates (for those under 25 years old) are to rise starting 1 April 2017.

The eagle-eyed among you may notice that those on the National Minimum Wage (NMW) are enjoying their second increase in a year (the last being 1 October 2016).

In summary, and effective 1 April 2017 the follow minimum wage rates will apply

  • Workers aged 25 and over – £7.50 per hour (up from £7.20 from 1 Apr 2016)
  • Workers aged 21 – 24 years old £7.05 per hour (up from £6.95 from 1 Oct 2016)
  • Workers aged 18 – 20 years old £5.60 per hour (up from £5.55 from 1 Oct 2016)
  • Workers under 18 years old £4.05 per hour (up from £4.00 from 1 Oct 2016)
  • Apprentice rate £3.50 per hour (up from £3.40 from 1 Oct 2016)*

* The apprentice rate is for 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.

Employers may be relieved to know that future rises are now planned for just once a year in April.

Ensure your payroll procedures are up to date. For further details and more rates visit gov.uk

Enjoy saving tax?

We have two videos to help on ourYouTube-logo-full_colorchannel; and for regular tax-tips follow our blog on Google+ or click +Follow at the bottom of this page.


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National Minimum Wage Rise from 1 October 2016

Ok, so this is getting confusing. The National Minimum Wage (NMW) now runs alongside the National Living Wage (NLW).

The National Minimum Wage (NMW) rates rise from 1 October 2016 whereas we don’t expect an increase in the National Living Wage until April 2017.

In summary, and effective 1 October 2016 the follow minimum wage rates will apply

  • Workers aged 25 and over – £7.20 per hour (as has been the case since 1 April 2016)
  • Workers aged 21 – 24 years old £6.95 per hour (up from £6.70)
  • Workers aged 18 – 20 years old £5.55 per hour (up from £5.30)
  • Workers 16 – 17 years old £4.00 per hour (up from £3.87)
  • Apprentice rate £3.40 per hour (up from £3.30)*

* The apprentice rate is for 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.

Ensure your payroll procedures are up to date. For further details and more rates visit gov.uk

Enjoy saving tax?

We have two videos to help on ourYouTube-logo-full_colorchannel; and for regular tax-tips follow our blog on Google+ or click +Follow at the bottom of this page.