From the 1
st April 2019, the National Minimum wage is increasing. The table below shows both the current rate, and the new rate from April this year.
Category of worker |
Current rate
(April 18-19) |
New rate
(from April 2019) |
Aged 25 and above (national living wage rate) |
£7.83 |
£8.21 |
Aged 21 to 24 inclusive |
£7.38 |
£7.70 |
Aged 18 to 20 inclusive |
£5.90 |
£6.15 |
Aged under 18 (but above compulsory school leaving age) |
£4.20 |
£4.35 |
Apprentices aged under 19 |
£3.70 |
£3.90 |
Apprentices aged 19 and over, but in the first year of their apprenticeship |
£3.70 |
£3.90 |
All businesses, no matter how large or small, must pay all employees at least the minimum wage. Remember, it is a criminal offence for employers not to pay someone the National Minimum Wage, so you need to make sure you have planned for the changes.
There is a useful
minimum wage calculator on the gov.uk website for employers to use to check whether you are paying your employees correctly.
With
employer workplace pension contributions also going up from April 2019, businesses are facing a double whammy of increased costs. This can have an impact on your cashflow – so make sure you are prepared.
For help or support with any aspect of payroll compliance or cashflow management, please contact your usual Moore adviser.