Yes it’s that time of year again when a vast majority of small business owners will need to dig deep to cover the increase in staff wages. Is your business aware of the changes and if so is it prepared to embrace the changes albeit a bit reluctantly in some cases? The following changes to the National Minimum Wage and National Living Wage rates will take effect as of the 1 April 2018.
Workers aged 25 and over: An increase from £7.50 to £7.83 an hour (NLW)
Workers aged 21 and over: An increase from £7.05 to £7.38 an hour (NMW)
Workers aged 18-20: An increase from £5.60 to £5.90 an hour (NMW)
Workers aged 16-17: An increase from £4.05 to £4.20 an hour (NMW)
Apprentice rate: An increase from £3.50 to £3.70 an hour (NMW)
Changes to Family Friendly Payments and Statutory Sick Pay (SSP)
Statutory maternity (SMP), paternity (SPP), adoption (SAP) and shared parental pay (ShPP) will all rise from £140.98 to £145.18 a week from April 2018.
Statutory sick pay (SSP) will increase from £89.35 to £92.05 per week.
The lower earnings limit will rise from £113 to £116. This is the weekly amount an employee has to earn to qualify for Family Friendly Payments and SSP
Things to Consider!
Stating the obvious, but make sure you’re prepared!
You will need to make the necessary amendments to your written statement of terms and conditions of employment or written employment contracts to reflect the changes.
You will also need to consider the impact of the increases in the National Minimum Wage and National Living Wage rates as employees previously ineligible for Family Friendly Payments and SSP may now qualify!
If you need any assistance in understanding what your obligations are as an employer or have concerns regarding the impact of these changes or any employment law compliance please feel free to contact PeoplePointHR at no cost and we will happily review your businesses compliance.
I have over17 years’ experience in providing HR/Employment Law and Health & Safety Solutions to businesses of all sizes and sectors. My aim is to always provide a committed service to my clients and…
