Changes to the National Minimum Wage and pension contributions

Posted on 12th February 2019 by Streets - What's trending?

Are you prepared for the increases in National Minimum Wage, National Living Wage and Auto-Enrolment Pension Contributions due to come into effect in April 2019?

National Minimum Wage and National Living Wage

The National Minimum Wage (NMW) is the minimum pay per hour most workers under the age of 25 are entitled to by law.

The government's National Living Wage (NLW) is the minimum pay per hour most workers aged 25 and over are entitled to by law.

The rate will depend on a worker's age and if they are an apprentice.

New Rates from April 2019

£8.21 per hour for ages 25 and over
£7.70 per hour for ages 21 to 24
£6.15 per hour for ages 18 to 20
£4.35 per hour for school leaving age to 17
£3.90 per hour for apprentice

A new rate will apply to the next pay reference period that begins on or after:

the date a rate increase begins
the date an employee reaches a new age bracket

Current rates

£7.83 per hour for ages 25 and over
£7.38 per hour for ages 21 to 24
£5.90 per hour for ages 18 to 20
£4.20 per hour for school leaving age to 17
£3.70 per hour for apprentice

Increase in Pension Contributions for Auto Enrolment

Date effective	Minimum employer contribution	Staff contribution	Minimum total contribution
6 April 2019 onwards	3%	5%	8%
6 April 2018 - 5 April 2019	2%	3%	5%

No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.