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02 / 04 / 2019

April Changes

Changes taking effect in April : this is no April fool!

AUTO-ENROLMENT – CONTRIBUTION INCREASE

With effect from 6th April 2019, the minimum auto-enrolment pension contribution increases as detailed in the table below: 

Date

Employer minimum contribution

Employee contribution

Total minimum contribution

Until 5 April 2018

1%

1%

2%

6 April 2018 to
5 April 2019

2%

3%

5%

6 April 2019 onwards

3%

5%

8%

The amount you and your employees pay into your pension scheme will vary depending on the type of scheme you have chosen and the rules of that scheme. You can find this information in the scheme documents or you can speak to your pension provider. 

The calculation for the AE scheme is based on a specific range of earnings. The government has confirmed the qualifying earnings bands for 2019/20 tax year, between £6,136 and £50,000 a year. 

By law a total minimum amount of contributions must be paid into the scheme. You, the employer, must make a minimum contribution towards this amount and your employee members must make up the difference. If you decide to cover the total minimum contribution required, your staff won’t need to pay anything. 

STATUTORY PAYMENTS INCREASE - APRIL 2019

 

Current weekly rate

New weekly rate

Effective from

Maternity / Paternity / Adoption

£145.18

£148.68

07/04/19

Sick pay

£92.05

£94.25

06/04/19

Lower earnings threshold

£116.00

£118.00

06/04/19

National Living Wage

 

 

 

Workers aged 25 and over

£7.83

£8.21

01/04/19

National Minimum Wage

 

 

 

Workers aged 21-24

£7.38

£7.70

01/04/19

Workers aged 18-20

£5.90

£6.15

01/04/19

Workers aged 16-17

£4.20

£4.35

01/04/19

Apprentice rate

£3.70

£3.90

01/04/19

 

National Minimum Wage

 

 

 

Workers aged 21-24

£7.38

£7.70

01/04/19

Workers aged 18-20

£5.90

£6.15

01/04/19

Workers aged 16-17

£4.20

£4.35

01/04/19

Apprentice rate

£3.70

£3.90

01/04/19


Other Changes
 

 

Current
Rate

New
Rate

Effective from

Guarantee Pay – this payment is a daily rate for the first 5 days an employee is laid-off within a 3 month period.

£28.00

£29.00

06/04/19

The limit on the amount of a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal.

£508.00

£525.00

06/04/19

The maximum compensatory award for unfair dismissal subject to the overarching limit of one year’s pay.

£83,682

£86,444

06/04/19

The minimum basic award in cases where the dismissal was unfair by virtue of health & safety, employee representative, trade union or occupational pension trustee reasons.

£6,203

£6,408

06/04/19

Employment tribunals have the power to impose a financial penalty against employers that are found to have breached a workers employment rights where there are “one of more aggravating features”.

The amount of the penalty will normally be 50% of the award, subject to a minimum of £100 and this financial penalty is payable to the Government.

The maximum level of financial penalty is £5,000

The maximum level of penalty increases to £20,000

06/04/19

 And finally….

GENDER PAY GAP REPORTING

By 4th April 2019, employers with 250 or more employees will need to report their gender pay gap, based on the snapshot date of 5th April 2018.  The gender pay gap is the percentage difference between average hourly earnings for men and women.

For details of how to calculate the gender pay gap see Information Update 2018/05.

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