Minimum and Living Wage Increases from 6th April 2019

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.

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