- National Living Wage and National Minimum Wage Increases
- Pension Contributions Increase
It’s that time of year again when everything is on the increase.
The Chancellor, Philip Hammond has announced the Increase of the National Minimum Wage and the National Living Wage. They will take effect from 1st April 2019.
This is the time to get a little personal with your employees and check that everyone is on the correct wage for their age range.
Although the National Living and Minimum wage is worked out on an hourly rate, employers may choose to pay their employees in various other ways such as: –
- An ‘Annual Salary’ (contract based known as ‘salaried hours’)
- ‘Paid by Piece’ (known as ‘output work’)
- ‘Paid in Other Ways’ (known as ‘unmeasured work’).
- ‘Paid by the Hour’ (known as ‘time work’)
However, the employer must calculate that each employee is on the correct wage to match that of someone working an hourly rate.
To find out more information regarding this and if you are paying all your employees the correct wage, please click the link here
Thought of the day…
The heart of the wise will easily accept instruction.
But those who do all the talking are too busy to listen and learn.
Workplace Pension Contributions Increase
From the 6th April 2019, employers will contribute a minimum of 3% and employees will contribute 5% from a portion of their earnings. This will be a total of 8% being paid into their retirement savings.
You, the employer, must make at least the minimum employer contribution towards this amount and your staff member must make up the difference.
By law a total minimum amount of contributions must be paid into the scheme plus as an employer you will need to enrol all your employees into a workplace pension scheme if they:
- Are aged between 22 and State Pension age
- Earn more than £10,000 a year
- Usually work in the UK
- If you are aware that any of your employees are not already enrolled in one
Please make your employees aware that they can opt out of the Workplace Pension Contributions at any time. They need to be aware however, that it will also mean losing out on employer and government contributions too.
They will also need reminding that even if they decide to move on and leave your workplace, the money contributed to their pension by you and them will remain theirs.
|Date Effective||Minimum Employer Contribution||Employee Contribution||Total Minimum Contribution|
|6th April 2018 – 5th April 2019||2%||3%||5%|
|6th April 2019 Onwards||3%||5%||8%|
Just for fun…
how many times are the words employee and employer mentioned in this newsletter?
- Posted by EasyBooks
- On 25th April 2019
- 0 Comments