30th March 2017


 Issue No.  2017/05




National Living Wage / National Minimum Wage

Changes to the National Minimum Wage have always been made in October.  However, following the introduction of the National Living Wage in April 2016, this has now changed and the NMW/NLW will be reviewed and any changes taking effect in April each year (see table). 

  Current Rate With effect 01.04.17
Workers aged 25 & over £7.20 £7.50
Workers aged between 21 & 24 £6.95 £7.05
Workers aged between 18 & 20 £5.55 £5.60
Training Rate £5.55 £5.60
Workers aged between 16 & 17 £4.00 £4.05
Apprentices £3.40 £3.50
Daily Accommodation Offset £6.00 £6.40

Statutory Rates 

Weekly Rates Current Rate New
Effective from
Statutory Maternity / Paternity / Shared Parental Leave £139.56 £140.98 02.04.17
Statutory Adoption Pay £139.56 £140.98 02.04.17
Maternity Allowance £139.56 £140.98 02.04.17
Statutory Sick Pay £88.45 £89.35 06.04.17
Earning Threshold for SSP, SMP, SPP and SAP £112.00 £113.00 06.04.17
Other Changes      
Guarantee PayPayment is for the first 5 days an employee is laid-off within a 3 month period £26.00 £27.00 06.04.17

Other Changes 

  Current Rate New
Effective from
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 £479.00 £489.00 06.04.17
The maximum compensatory award for unfair dismissal subject to the overarching limit of one year’s pay £78,962 £80,541 06.04.17
The minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union or occupational pension trustee reasons £5,853 £5,970 06.04.17

 Auto Enrolment

The current timetable for increasing contributions to the auto-enrolment pension schemes are as follows:

  Minimum Employer Contribution Minimum Employee Contribution Tax Relief on Employee Contributions
Employer’s Staging date to 05.04.18 1% 0.8% 0.2%
From 06.04.18 to 05.04.19 2% 2.4% 0.6%
06.04.19 onwards 3% 4% 1%

Previously, the total minimum contributions had been set to go up from 2% to 5% in October 2017 followed by a ris to 8% in 2018.  However, these rises have been delayed (to align them with the tax year) and will now take place in April 2018 and April 2019.





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