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Changes to the National Minimum Wage and pension contributions

Posted on 12th February 2019 - What's trending?

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Are you prepared for the increases in National Minimum Wage, National Living Wage and Auto-Enrolment Pension Contributions due to come into effect in April 2019?

National Minimum Wage and National Living Wage

The National Minimum Wage (NMW) is the minimum pay per hour most workers under the age of 25 are entitled to by law.

The government's National Living Wage (NLW) is the minimum pay per hour most workers aged 25 and over are entitled to by law.

The rate will depend on a worker's age and if they are an apprentice.

New Rates from April 2019

  • £8.21 per hour for ages 25 and over
  • £7.70 per hour for ages 21 to 24
  • £6.15 per hour for ages 18 to 20
  • £4.35 per hour for school leaving age to 17
  • £3.90 per hour for apprentice

A new rate will apply to the next pay reference period that begins on or after:

  • the date a rate increase begins
  • the date an employee reaches a new age bracket

Current rates

  • £7.83 per hour for ages 25 and over
  • £7.38 per hour for ages 21 to 24
  • £5.90 per hour for ages 18 to 20
  • £4.20 per hour for school leaving age to 17
  • £3.70 per hour for apprentice

Increase in Pension Contributions for Auto Enrolment

Date effective

Minimum employer contribution Staff contribution Minimum total contribution
6 April 2019 onwards 3% 5% 8%
6 April 2018 - 5 April 2019 2% 3% 5%

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