1. Minimum wage increase – 1 April 2018
The National Living Wage (minimum rate paid to workers aged 25 and over), will increase by 4.4% to £7.83 an hour.
The National Minimum Wage rates will increase from:
- £7.05 to £7.38 for 21 to 24 year olds
- £5.60 to £5.90 for 18 to 20 year olds
- £4.05 to £4.20 for 16 and 17 year olds
- £3.50 to £3.70 for apprentices.
2. Statutory family-related pay – 1 April 2018
Statutory maternity, paternity, adoption and shared parental rates increase to £145.18 per week from 1 April 2018.
3. Gender pay gap – 4 April 2018
This impacts employers with at least 250 employees and they are required to publish information about the differences in pay between male and female workers. The deadline for the private and voluntary sector is 4 April 2018. There is a requirement for employers to publish this data on company websites as well as upload results to the Governments gender pay gap reporting website.
4. Statutory sick pay – 6 April 2018
Statutory sick pay weekly rates increase to £92.05.
5. Taxation of termination payments – 6 April 2018
Termination of employment that takes place on or after 6 April 2018 will be subject to new rules. All notice pay will be treated as earnings and subject to tax and national insurance contributions, removing the distinction between contractual and non-contractual PILONs (payments in lieu of notice). This means first £30,000 of a termination payment remains exempt from income tax and national insurance contributions (NICs). But payments over £30,000 will be liable for income tax and employer NICs.
6. Pension Auto-enrolment contributions increase – 6 April 2018
Unless you have formally opted out of your company auto-enrolment pension scheme, contributions will increase from one percent of your salary to three percent as of 6 April. The good news for employees and bad news for employers is that employers will also have to double their contributions from one to two percent.
7. Increase in compensatory awards – 6 April 2018
The maximum amount for a week’s pay used to calculate statutory redundancy payments will increase to £508 per week. As from 6 April 2018, the maximum compensatory award for unfair dismissal will rise to £83,682.
If you have any questions, concerns or need any advice on any of these topics, please contact Amanda Pillinger on 01789 336 957 or email@example.com.