20 Mar Changes Ahead….
Following last year’s new National Living Wage that was bought in by the government, all employees aged 25 or over and not in the first year of an apprenticeship will be legally entitled to at least £7.50 per hour as of 1 April 2017, which is a not too shabby! What’s more, the Government is committed to increasing this year-on-year and foresees the amount to increase to at least £9 by 2020.
The new rate is calculated independently and based on the cost of living. Hailed as beneficial for businesses and workers alike, a government survey has found that more than 70% of employees have said they feel more positive for themselves and their families, and that 59% will feel motivated at work.
Although many employers want to invest money in their staff, it could be crippling for smaller businesses in industries such as retail and hospitality. After all, it’s not just the change in wage; it’s the increase in holiday payments, pensions, absences etc.
The NLW and NMW rates from 1 April 2017 will be:
£7.50 per hour – 25 years old and over
£7.05 per hour – 21-24 years old
£5.60 per hour – 18-20 years old
£4.05 per hour – 16-17 years old
£3.50 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.
Statutory Redundancy Pay:
£489, increasing from £479 and the top award of statutory redundancy pay also increases to £14,670 from £14,370
Statutory Maternity and Paternity Pay:
£140.98 per week
Statutory Sick Pay:
£89.35 per week
If you’re struggling to structure your staff pay or don’t fully understand the implications of the National Living Wage, get in touch. We can talk you through it and make sure you’ve got everything covered.