As we head toward the end of the tax year (Christmas seems a long time ago suddenly), there are plenty of updates and changes, but one - possibly the most far-reaching - will actually debut prior to April 6th. The National Living Wage (NLW) will increase on April 1st 2019 and both companies and individuals should be aware of these changes:
So what are the differences?
Aged 25 and over? The new rate is £8.21 per hour (up from £7.83)
Aged between 21 to 24? Now £7.70 per hour (up from £7.38)
Aged between 18 to 20? Up to £6.15 per hour (from £5.19)
Aged under 18? The minimum is £4.35 (up from £4.20)
Bear in mind these are the legal minimums, and the Living Wage Commission still recommends a rate of £9.00 per hour for the UK in General, and £10.50 for London. Companies paying a better wage may find that it helps attract and retain quality staff.
FPS takes compliance with all legislation extremely seriously and the Living Wage is no exception, especially with the severe penalties that can be handed out for even accidental breaches. We monitor our payrolls to ensure that all workers receive the correct amounts due and that nobody falls below the NMW or NLW. Get in touch with us today to see how we can help your business.