Are you aware of the change to rates of pay from April?
The run up to April can be a busy time for many businesses and HR professionals alike, with many changes to employment legislation just around the corner. Here at First Call HR we have complied a handy list of just what changes you can expect come April 1st, focusing particularly on changes to statutory pay and the national minimum wage.
National Minimum Wage
The rates for the National Living Wage and National Minimum Wage will increase on April 1st by the following:
- 25 years old and over- Increase from £7.20 to £7.50 per hour
- 21-24 years old- Increase from £6.95 to £7.05 per hour
- 18-20 years old- Increase from £5.55 to £5.60 per hour
- 16-17 years old- Increase from £4 to £4.05 per hour
- Apprentices under 19 or 19 who are in the first year of apprenticeship- Increase from £3.40 to £3.50 an hour.
Statutory family- related pay and sick pay
As of the 2nd April, the statutory rates for maternity, paternity, shared parental and adoption pay will increase from the weekly rate of £139.58 to £140.98, or 90% of the employee’s average weekly earnings if the figure is less than the statutory rate.
The weekly rate of statutory sick pay will also increase to £89.35 from 6th April.
Statutory Redundancy Pay
Employers that dismiss employees for redundancy must pay those with two years’ service based on their weekly pay, age and how long they have been with the organisation. The weekly pay is subject to a maximum amount, and as of April 6th this is increasing from £479 to £489.
Tax advantages are to be limited following the government’s decision to alter the way employers can offer salary sacrifice schemes. From April 2017 tax benefits will be removed from anything from private health schemes to gym memberships. Employers are advised to review all employee benefits and check transitional arrangements.
If you have any questions about how any of these changes will affect your business, do not hesitate to contact the team here at First Call HR who would be more than happy to help.