 Photo by Marten Bjork on Unsplash | There might not have been a budget in March, but lots is changing on the employment front. National Minimum (NMW) and Living Wages will increase from 1 April 2018. The changes are as follows: |
| Age Group National Living Wage (25+) NMW (21-24) NMW (18-20) NMW (16-17) | April 2017 £7.50 p.h. £7.05 p.h. £5.60 p.h. £4.05 p.h. | April 2018 £7.83 p.h. £7.38 p.h. £5.90 p.h. £4.20 p.h. |
It’s important to note that the change is 1 April and not 6th April so wages and salaries change before the end of the tax year. There have been some high profile ‘naming and shaming’ with resultant fines so it’s important to make sure you’re on top of this as you’ll not only have to pay the back pay but you could also be ‘named and shamed’ and be subject to a fine.
With increases over the rate of inflation, its also really important that you also check to see if an employee needs to be taken into a pension scheme as the £10,000 trigger remains unchanged which means more people are likely to qualify. More detail can be found here:
http://www.thepensionsregulator.gov.uk/automatic-enrolment-earnings-threshold.aspx
April also marks the first time that minimum pension contributions will rise, so it’s important your payroll software or payroll provider is on board. You’ll also note that you need to budget more for pension contributions. More information can be found on the link below:
http://www.thepensionsregulator.gov.uk/doc-library/increases-in-minimum-contributions-automatic-enrolment.aspx
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