National Living/Minimum Wage Changes from 1 April 2018
From 1 April 2018 the National Living/Minimum Wage rates will increase as follows:
- £7.83 an hour for workers aged 25 and over – previously £7.50
- £7.38 an hour for workers aged 21 to 24 – previously £7.05
- £5.90 an hour for workers aged 18 to 20 – previously £5.60
- £4.20 an hour for workers aged 16 to 17 – previously £4.05
- £3.70 an hour for apprentices under 19 or in their first year – previously £3.50
If you are paying any employees with reference to the National Living/Minimum Wage you will need to amend the hourly rates accordingly.
Auto-enrolment: Minimum contributions increase with effect from 6 April 2018.
Under auto-enrolment all employers have to automatically enrol certain employees into a pension scheme and make minimum contributions into that scheme. From 6 April 2018 these minimum contributions will increase as part of the phasing in, and employers need to take steps now to ensure they comply with this change.
If the qualifying earnings basis is being used, the current minimum contribution until 5 April 2018 is 2% with at least 1% from the employer.
Between 6 April 2018 and 5 April 2019 the minimum contribution is 5% with at least 2% from the employer, so contributions should be reviewed now in readiness for this.
Looking ahead, from 6 April 2019 the minimum contribution will be 8% with at least 3% from the employer.
For more information see The Pensions Regulator contribution levels guidance here.
If you have any questions on the above, please do not hesitate to contact me.
Regards
Rebecca Edwards, Payroll Manager
