Upcoming Changes to Statutory Payments
Tuesday 19th March 2019
A number of changes to employment related statutory payments take place in early April 2019.
The National Minimum Wage is set to increase by nearly 5% to £8.21 per hour for all workers aged 25 or over, alongside increases across the other pay bands. The changes will be effective from 1 April 2019.
As of 6 April 2019 workers as well as employees become entitled to an itemised pay statement which must include the gross amount of wages, any deductions, the net amount of wages and where parts of the net amount of wages are paid in different ways the amount and the method for each part payment. This change will not apply in relation to wages or salary paid in respect of a period of work which commences before 6 April 2019.
Auto enrolment pension contributions also increase as of 6 April 2019. The minimum contributions from staff increase to 5% whilst employer contributions increase to 3%. All employers with staff in a pension scheme for automatic enrolment must take action to make sure at least the minimum amounts are being paid into their pension scheme.
Statutory sick pay, maternity pay, paternity pay and the maximum awards which can be made by the Employment Tribunal all see increase from 6 April 2019.
Employers should take action now to ensure that new levels of pay and pensions contribution adjusted to adhere to the increased levels in time and that workers as well as employees are provided with the required pay statement from 6 April 2019.
Please refer to our Statutory Payments Fact Sheet which provides the most up to date rates on the national minimum living wage, compensation limits and statutory payments for time off work.