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News Story

National Minimum Wage Increase Reminder

A reminder that the National Minimum Wage (NMW) is set to increase on 1st April 2019. The rate applies to both salaried and hourly paid employees. The new rates will be as follows:

Current rate Rate from 1 April 2019
25 yrs old and over £7.83 £8.21
21-24 year olds £7.38 £7.70
18-20 year olds £5.90 £6.15
16-17 year olds £4.20 £4.35
Apprentice rate* £3.70 £3.90

From 6 April 2019, payslips for employees who work variable hours will have to state the number of hours worked, as well as the amount being paid. This has been put in place to enable employees to have more understanding of the payment that they receive.

Statutory rates will increase:

  • From 6 April 2019, the rate for Statutory Sick Pay will increase from £92.05 per week to £94.25 per week.
  • From 7 April 2019, the statutory rate for maternity/paternity/adoption/shared parental pay will increase from £145.18 per week to £148.68 per week. The lower earnings limit, at which entitlement to these payments occurs, will increase from £116 to £118 per week.

Minimum payments for auto-enrolment will increase:

  • Minimum contributions from both the employer and the employee into auto-enrolment pension schemes will increase from 6 April 2019. Employers will have to contribute a minimum of 3% of the employee's pre-tax salary (increased from 2%), and employees will have to contribute a minimum of 5% (increased from 3%).
  • The Pension Regulator states that although there is no legal requirement to write to staff about these increases, they suggest employers consider reminding them of these increases to help minimise queries.

Reforms to employment law:

It is confirmed that the following will be implemented on 6 April 2020:

  • You will have to give employees a written statement of their employment particulars from day one of their employment (at present you must give this to employees within the first two months of their employment).
  • When calculating holiday pay for employees with variable pay, you will have to take an average of their earnings over the previous 52 weeks (at present most of the employers take an average of earnings over the previous 12 weeks).
  • The 'Swedish Derogation', which allows agency workers to be paid at a lower rate than permanent employees if they receive pay between contracts, will be abolished.

It is important that employers update their payroll in time for 1st April 2019.

Employers need to be aware that failure to pay staff the NMW is a criminal offence and can give rise to fines and expensive claims.

If you need any help with implementing these changes or if you have any queries about your payroll please contact:

Elaine Simmons on 01132574506 or email e.simmons@bprheaton.co.uk or Gordon Gruppetta g.gruppetta@bprheaton.co.uk

BPR Heaton | 27a Lidget Hill | Pudsey | Leeds | LS28 7LG

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