As April approaches, so does a whole host of tweaks and changes that your business needs to be aware of and prepared for.
Here is a summary of the key changes:
- All workers will have a legal entitlement to an itemised payslip
- Payslips for hourly paid staff must contain a break down of the hours that they have worked and their rate of pay.
- The auto-enrolment pension rates will increase
- National Minimum Wage is increasing.
We have summarised the key rate changes below:
Pension Contributions Increase
|Date||Employer Minimum Contribution||Staff Contribution|
New Rate from 6 April 2019
|Current rate: 6 April 2018 to 5 April 2019||2%||3%|
|Minimum Wage Hourly Rate Increases|
|Age||1 April 2018||1 April 2019|
|25 and over||£7.83||£8.21|
|21 to 24||£7.38||£7.70|
|18 to 20||£5.90||£6.15|
Statutory Pay Rate Increases
|Maternity, Paternity, Shared Parental and Adoption Leave Pay||£145.18||£148.68|
|Statutory Sick Pay||£92.05||£94.25|
|Lower earnings Limit for above payments||£116||£118|
We advise that you start to prepare for these changes as soon as possible. You should already have a system in place to check the ages and birthdays of your employees to ensure that they are being paid the correct wage for their age bracket.
You may also have to begin a more detailed reporting procedure to log the hours each employee works and ensure that these details are communicated to your payroll department so that amendments can be made to your payslips.
Unfortunately, ever year we see businesses struggle to accommodate the changes due to the financial impact they can have. You will need to plan now for these changes and consider whether your business is working in the most effective way possible. We can assist you to do this in a number of ways:
- Guidance and hands-on help to arrange and conduct appraisals
- Devising an Employee Engagement Plan
- Implementation of performance monitoring and performance improvement plans
- Disciplinary management
- Managing sickness and reducing sickness absence
- Transforming your culture with a Change Management Programme
- Redundancy and restructure advice.
Please call us on 0114 303 2300 or email [email protected] for a confidential discussion on the best options for your business.