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APRIL SPRING INTO ACTION – NEW PAYROLL LEGISLATION TO NOTE!

APRIL SPRING INTO ACTION – NEW PAYROLL LEGISLATION TO NOTE!

AUTO ENROLMENT PENSION CONTRIBUTIONS INCREASE FROM APRIL 

With effect from 6th April, the minimum automatic enrolment (AE) contributions you must pay towards your employees’ pensions will increase. You will now need to contribute at least 2%, whilst the employee is required to contribute 3% themselves through automatic wage deductions. The government has warned that any failure to abide by these new regulations will lead to financial penalties for the organisation in question

STATUTORY PAY RATES TO INCREASE

The weekly pay rates of statutory maternity pay (SMP), statutory adoption pay (SAP), statutory paternity pay (SPP) and shared parental pay (ShPP) will all increase from £140.98 to £145.18.

Coinciding with the new tax year, statutory sick pay (SSP) will increase from 6th April from £89.25 to £92.05 a week. The average weekly earnings limit which an employee must reach to be eligible for these statutory payments will also rise from £113 to £116 a week.

NATIONAL LIVING WAGE AND MINIMUM WAGE INCREASE

You will need to ensure you are paying your employees the new rates.

From the 01st April 2018 the Minimum Wage rates has increased as below:

  • 25+ year olds – NMW (National Living Wage) will increase from £7.50 to £7.83 per hour
  • 21 – 24 year olds – MW will increase from £7.05 to £7.38 per hour
  • 18 – 20 year olds – MW will increase from £5.60 to £5.90 per hour
  • 16 – 17 year olds – MW will increase from £4.05 to £4.20 per hour
  • Apprentice rate (for apprentices under the age of 19 or 19 and over but in the first year
    of apprenticeship) – MW will increase from £3.50 to £3.70 per hour

 

NATIONAL LIVING WAGE AND MINIMUM WAGE INCREASE TOGETHER ON 1ST APRIL 2017 – MAKE SURE YOU ARE IN LINE!

NATIONAL LIVING WAGE AND MINIMUM WAGE INCREASE TOGETHER ON 1ST APRIL 2017 – MAKE SURE YOU ARE IN LINE!

The National Living Wage and the Minimum Wage will be increasing on the 1st April 2017.

As from April 2017 both the MW and NLW will increase each year in April instead of October, going forward.

You will need to prepare for the changes and ensure you are paying your employees the new rates.

From the 1st April 2017 the Minimum Wage rates will increase as below:

 

  • 25+ year olds – NMW (National Living Wage) will increase from £7.20 to £7.50 per hour
  • 21 – 24 year olds – MW will increase from £6.95 to £7.05 per hour
  • 18 – 20 year olds – MW will increase from £5.55 to £5.60 per hour
  • 16 – 17 year olds – MW will increase from £4.00 to £4.05 per hour
  • Apprentice rate (for apprentices under the age of 19 or 19 and over but in the first year
    of apprenticeship) – MW will increase from £3.40 to £3.50 per hour

 

N.B. Don’t forget that failure to pay the correct rate could lead to a penalty charge of up to £20,000 for each member of staff underpaid.

 

NEW MINIMUM WAGE INCREASE IN OCTOBER 16 – BE AWARE!

NEW MINIMUM WAGE INCREASE IN OCTOBER 16 – BE AWARE!

Reminding you of the minimum wage increase because any failure to correctly pay National
Minimum Wage (NMW) or National Living Wage (NLW), even because you didn’t know about an
increase, will break the law.
From the 1st October 2016, the National Minimum Wage rates will be increasing as below:
• 21 – 24 year olds – NMW will increase from £6.70 to £6.95 per hour
• 18 – 20 year olds – NMW will increase from £5.30 to £5.55 per hour
• Over compulsory school age but not yet 18 – NMW will increase from £3.87 to £4.00 per
hour
• Apprentice rate (for apprentices under the age of 19 or 19 and over but in the first year
of apprenticeship) – NMW will increase from £3.30 to £3.40 per hour

You may have noticed that the National Living Wage is not increasing in October.

As the NLW rate for those aged 25 and over was only introduced in April 2016 the current rate of £7.20 per
hour will continue to apply until April 2017. The quoted increase from next April is £7.60 per
hour but this has not yet been confirmed.
This may appear to be more of a problem because some staff’s wages will rise in October and some will
rise in April. However, from April 2017, the NMW and NLW will align and each annual increase
will take place in April from then on. This means it is likely that the NMW will increase in both
October 2016 and April 2017.

Quickpaye will keep you up to date with future NMW and NLW increases and
when these will take effect in the future.