April 2019 is set to be a significant month for the UK, with a potential exit from the EU (dependent on negotiations) on the cards, a rise in the National Minimum (NMW) and Living Wage (NLW) as well as pension contributions for both employers and employees, amongst a whole host of other changes that have come into force.
For contractors, changes to NMW, NLW and pension contributions will ultimately impact upon their take home pay, therefore we want to keep you updated about these changes.
National Minimum and Living Wage
The National Minimum and Living Wage has risen once again this year. Minimum wage is calculated depending on the age of an employee up to the age of 25, with Living Wage covering those 25 and over. Changes to these rates are as follows:
Under 18
Increased from £4.20 to £4.35 per hour
18-20
Increased from £5.90 to £6.15 per hour
21-24
Increased from £7.38 to £7.70 per hour
25 and over
Increased from £7.83 to £8.21 per hour
Pension Contributions
From 6th April, the minimum pension contributions that an employer and employee is required to place into an arrange pension scheme will rise. This will be the third and final time that minimum contributions will rise following the introduction of auto-enrolment.
From April 2018 to April 2019 contributions stood at 5% (3% from employee earnings and 2% for employer), from 6th April 2019 this will rise to 8% (5% from employee and 3% from employer).
Do you have any questions about these changes and how they impact your take home pay? Contact the expert team at Sterling today to discuss.
