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Haines Watts Northampton Phone icon 01604 746760

As of 1st April 2019, the new tax year brings about a number of legislative changes to wages. Our People Services team, gives us an update below:

National Minimum Wage is going up!

From April 2019, the rates will increase as follows:

Age Bracket April 2018 April 2019
25 and over £7.83 £8.21
21 to 24 £7.38 £7.70
18 to 20 £5.90 £6.15
Under 18 £4.20 £4.35
Apprentices* £3.70 £3.90

 

* Apprentices are entitled to the apprentice rate if they’re either:

  • aged under 19
  • aged 19 or over and in their first year of apprenticeship

If Apprentices are 19 or over and have completed their first year of apprenticeship, they’ll be entitled to receive the National Minimum Wage for their age.

 

Payslips required for ALL workers
Employers will be required to provide payslips for all workers (now to also include causal, contract and zero hours).
Payslips must also now show hours on payslips, where the pay varies by the amount of time worked.#

 

Pension changes
Minimum contributions for auto-enrolment pension schemes are set to increase and will go up as follows:

The current total contribution’s set to 5% and is made up of the employer minimum payment of 2%, with the employee meeting the remainder.

From April 2019, it’s set to increase to a total contribution of 8%. The minimum employer contribution is 3%, with the shortfall falling to the employee. However, if the employer’s willing to pay more, the employee contribution will be less – as long as the overall TOTAL contribution’s met.

In addition, the Government also announced the lower limit qualifying earning band would increase from £6,032 to £6,136 and the upper limit will increase from £46,350 to £50,000 per annum.

 

Statutory sick pay, maternity and paternity pay changes
On 7th April, the rates of weekly statutory maternity and paternity pay will increase from £145.18 to £148.68, or 90% of the employee’s average salary if this figure’s less than the statutory. This increase also applies to the rate of statutory adoption pay. The rate of statutory sick pay will also increase from £92.05 to £94.25.

The lower earnings limit, beneath which employees aren’t eligible for these statutory payments, is also increasing from £116 to £118.

 

Executive pay reporting
From the start of January, organisations with more than 250 employees will be required to calculate the pay ratio between employees in the 25th, 50th and 75th percentile and their CEO, which they’re already legally obliged to publish within their annual report.

This regulation applies to financial years starting after the 1st January, which means reporting on these new requirements will begin in 2020.

For help and support surrounding the legislative changes, ensuring your employment contracts and HR policies are accurate and up-to-date, or you’d simply like some more guidance, please contact either Johanne Taylor at jtaylor@hwca.com or Beth Wade at bwade@hwca.com who will be more than happy to advise on any matter.

Want to know more? Call us on 01604 746760 or email northampton@hwca.com

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