Further to our update in August 2015, here is a reminder about the new National Living Wage (NLW) which is effective from 1st April 2016.
Some employees will see a 50p/hour increase to their wages, which will affect the gross cost to the employer in terms of net wages and employer National Insurance contributions, but also pensions contributions if you are already running an Auto Enrolment scheme.
Rates effective from 01/04/16 are as follows:
£7.50 rate for workers aged 25 and over
£6.70 rate for workers aged 21 and over
£5.30 rate for workers aged 18-20 year old
£3.87 rate for workers above school leaving age (16/17) but under 18
£3.30 rate for apprentices aged under 19, or 19 and over and in the first year of their apprenticeship
The Government have promised to increase the figure each year, so it is probable that the next increase will be as soon as October 2016 (when the National Minimum Wage (NMW) has historically changed).
It is important for employers to be aware of the new rates, and their employees’ date of birth, as it will help with budgets and forecasts as well as ensuring that no errors are made in calculating the correct rate of pay.
Note that the National Living Wage will not effect directors of a company, who do not have an employment contract.
Moore Accountancy provide payroll services for small businesses who wish to delegate this job; so that they can focus on the running and growing of their companies.
If you would like more information on the payroll services we provide, then please call us on 07542299247, email us at email@example.com or contact us via our website www.mooreaccountancy.co.uk