As another year passes, another set of statutory pay increases take effect. If you employ staff or are an employee affected by one of the minimum statutory rates below, make sure that you are aware of the increases that will follow below. Remember: while pleading ignorance may get you far in your personal relationships, the government will not be quite as forgiving. HMRC and employment tribunals will make you wash those metaphorical dishes and will slap you with a hefty fine for making them ask twice.

Ensure that your organisation is paying the national minimum wage

So, while this is not a complete list of all changes that are taking place, we have filtered out the increases that you may likely be affected by as an employer or employee. From today, the 1st April 2019:

National Minimum Wage rises to the following:

  • 25yo and over £8.21
  • 21-24yo £7.70
  • 18-20yo £6.15
  • Under 18 £4.35
  • Apprentice £3.90

From the 6th April 2019:

  • Tax thresholds, £12,500/0% – £37,500/20% – £150,000/40%
  • Statutory Adoption, Maternity, Paternity and Shared Parental Pay –  £148.68
  • Statutory Sick Pay – £94.25
  • £525.00 is the new maximum amount for one week pay when calculating statutory redundancy pay

Pension Contribution Increases

From 6 April 2019, the minimum level of employer contribution into a pensions auto-enrolment scheme increases from 2% to 3%, with an increase in the employee contribution from 3% to 5%. The total minimum contribution, therefore, increases from 5% to 8%.

Payslips

Two important changes to the rules on payslips come into force on 6 April 2019. The changes cover payslips for pay periods that begin on or after this date.

Firstly, payslips must include additional information for individuals whose pay varies depending on the number of hours that they have worked. Where an individual’s pay varies by reference to time worked, the payslip must set out the number of hours paid for on this variable basis.

For example, where a worker has a fixed salary each month but works variable over time with additional pay at an hourly rate, the hours of overtime should be shown. The hours can be shown either as a single total of all such hours in the pay period or can be broken down into separate figures for different types of work or different rates of pay.

Secondly, the right to a payslip is extended to all workers, rather than just employees, for pay periods that begin on or after 6 April 2019. Click here to find out more.

Checklist of what you need to do:

  • Review all staff to ensure they meet NMW thresholds
  • Write to all staff with increases as a record of the changes to their contract (if you have updated your contract this is a good time to issue new ones)
  • Remind your staff about the pensions increases
  • Review your payslips to ensure they are compliant
  • Review statutory payments with your payroll provider

Make sure that you are paying your teams the right amount of money. A correctly remunerated team is a happy team, and a happy team is a productive team. If you have any questions on this year’s statutory payment increases or need advice or support on other HR matters, please do not hesitate to get in touch by emailing, [email protected], or phoning 02382 025160.

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