Saffery Champness is advising employers to be aware of changes to the National Living Wage and National Minimum Wage that come into effect from 1 April 2018, and also an increase in employer contributions under pension auto-enrolment of 1% from 6 April.
The National Living Wage, which is obligatory, applies to most UK workers aged 25 and over. It came into effect on 1 April 2016 and as of 1 April 2018 increases from £7.50 to £7.83 per hour, an increase of 4.4%.
The National Minimum Wage, applying to most of those below age 25, increases to:
- £7.38 (from £7.05) per hour for employees aged 21-24;
- £5.90 (from £5.60) per hour for employees aged 18-20;
- £4.20 (from £4.05) per hour for employees aged 16-17; and
- £3.70 (from £3.50) per hour for the Apprentice National Minimum Wage.
Employers are also advised that their contributions under pension auto-enrolment increase to 2% from 6 April 2018, and by a further 1% from April 2019 onwards. Employee contributions increase to 3% and 5% respectively at those same dates.
Martyn Dobinson, a Director based in Saffery Champness’ Manchester office, comments:
“We were aware last year of a number of instances where HM Revenue & Customs was carrying out compliance checks in the rural sector to see that minimum wage levels were being met. We have no reason to believe that that inspection regime will not continue.
“We are therefore urging all employers to be aware of the correct minimum wage levels after the changes come into force and to be sure that their records are correct and up-to-date. In the rural sector there can be complications, for example with beaters, casual workers and temporary staff, and where there is any doubt then professional advice should be sought.”