From April 2019, there are some changes to the national Minimum Wage and to pensions which may affect you, and your church or organisation. What are the changes and what do you need to consider?
National Minimum Wage
As of April 2019, the National Living Wage (NLW) and the National Minimum Wage (NMW) have been increased. All workers, except those who are genuinely self-employed, are entitled to receive the NLW or the NMW, as appropriate to their age or circumstances.
The NLW applies to workers of 25 years and above. The new rate is £8.21 per hour, an increase from £7.83 in 2018.
The NMW has four rates depending on the age or category of your workers:
- 21 – 24 years -£7.70 per hour (increase from £7.38)
- 18 – 20 years – £6.15 per hour (increase from £5.90)
- 16 – 18 years – £4.35 per hour (increase from £4.20)
- apprentice rate – £3.90 per hour (increase from £3.70)
Pension auto enrolment
Employers must enrol all eligible employees into a pension scheme and contribute towards it. Full details of this can be found on the Pension Regulator’s website. From 6th April 2019 the contribution rates for employers and employees with rise:
- Employer minimum contribution – 3%
- employee minimum contribution – 5%
- total contribution – 8%
If you are unsure about your responsibilities as an employer, get in touch with us to talk it through.
This information has been provided by solicitors working for Edward Connor Solicitors. It is designed for the purpose of knowledge sharing only and does not constitute legal advice.