There are wage and pension contribution increases coming into effect from 6th April 2019. If you are an employer read further to ensure you are compliant.
Wage increase
From April 2019, minimum pay rates will increase as set out below.
National Living Wage (NLW) rates for workers aged 25 and over - from £7.83
to £8.21 per hour.
- National Minimum Wage rates:
- workers aged 21–24 — from £7.38 to £7.70 per hour
- workers aged 18–20 — from £5.90 to £6.15 per hour
- workers aged 16–18 — from £4.20 to £4.35 per hour
- apprentice rate — from £3.70 to £3.90 per hour.
The accommodation offset rate will rise to £7.55.
This should mean that a full-time worker aged 25 and over on the NLW will receive an annual pay increase of £690.
Employers are reminded that these rates are not optional. HMRC police the National Minimum Wage and NLW regulations and employers found to be in breach will be subject to penalties and have to repay any arrears to affected employees.
Pension contribution increase
By law minimum pension contributions will be increasing from 6 April 2019. All employers must take action to make sure at least the minimum amounts shown below are being paid into their automatic enrolment pension schemes.
|
Date Effective |
Employer Minimum Contribution |
Employee Contribution |
Total Minimum Contribution |
|
Current Rate: |
2% |
3% |
5% |
|
From 6 April 2019 |
3% |
5% |
8% |
