A quick reminder from us that the new payroll year begins on 6 April 2019. Many statutory changes come into effect, including new rates for Statutory Sick Pay, Statutory Maternity and Paternity Pay, but employers should be especially aware of the changes they will need to make to the minimum and living wage rates.
Every April the minimum wage and living wage increase so employers will need to ensure that their employees are receiving at least the minimum hourly rate for their age. Employees aged 25 and over must be paid at least the National Living Wage whilst employees aged under 25 must receive at least the National Minimum Wage.
These are the new rates from April 6th 2019
Age 25 & over Increase to £8.21 per hour Up from £7.83 per hour
Age 21 to 24 Increase to £7.70 per hour Up from £7.38 per hour
Age 18 to 20 Increase to £6.15 per hour Up from £5.90 per hour
Under 18 Increase to £4.35 per hour Up from £4.20 per hour
Apprentice Increase to £3.90 per hour Up from £3.70 per hour
Apprentices can be paid the apprentice rate if they are aged under 19 or if they are 19 and over and in the first year of their apprenticeship. An apprentice who is over 19 and has completed their first year of apprenticeship is entitled to the minimum wage rate for their age.
If you provide your employee with accommodation you can charge them the offset accommodation rate of £7.55 per day for 2019/20. If you charge them more than this amount for their accommodation and only pay them the Minimum Wage rate for their age you will be paying them less than they must be paid.
Please remember that It is a criminal offence not to pay your employees the National Living Wage or National Minimum Wage. Contact us for help and advice in this area.