Changes to minimum wage, workplace pension contributions, sick pay and other employment laws come into effect on or from 1st April 2019
If you run a business in the UK then you need to make sure you are aware and have made the relevant changes within your payroll or HR department to comply with the new employment laws the government announced at the last budget on 29th October 2018.
We’ve summarised the changes for you below…
National Minimum Wage (NMW)The NMW rates are scheduled to increase for all pay reference periods which start on or after 1st April 2019. This means all minimum wage workers will receive a pay rise which will affect your cashflow.
|21 to 24||18 to 20||Under 18||Apprentice*|
*Apprentices are entitled to their apprentice rate if they’re either aged under 19 or over 19 but in their first year of their apprenticeship. E.g. An apprentice aged 22 in the first year of their apprenticeship is entitled to a minimum hourly rate of £3.70. When apprentices are over 19 and have completed their first year then you must pay them the minimum wage for their age!
Statutory Sick Pay
The qualifying criteria for Statutory Sick Pay (SSP) will change from the 6th April 2019. The amount individual employees will need to earn is at least £118 per week in order to qualify for weekly payments of £94.25.
Maternity, paternity, adoption and shared parental pay will increase to £148.68 per week from 7th April 2019 which means that you may need to amend your policies.
The contribution for Workplace Pensions is going up for both you as the employer and your employees.
We recommend you ensure your employees know that their contribution is going up to 5% of their annual salary. Your payroll department will need to ensure the system is ready to process these changes to avoid reprisals from the pensions regulator.
The way Employee Payslips are produced is changing. A rethink is in order as both employees and workers will be entitled to receive itemised pay statements from 6th April onward.
All payslips will need to include the total number of hours worked, where this influences pay – meaning payroll and your HR Department will need to work together to ensure relevant employees receive their payslips in accordance with these new requirements.