Increases in the minimum wage & pension contributions April 2019
We’re now fast approaching the end of the tax year, upon which we will a see further increase to the minimum wage and to the rate of minimum pension contributions. These are due to take effect on the 6th of April 2019 and should remain in place until the 5th April 2020.
Minimum Wage Increase
As announced by the Chancellor in the October budget, the rates will change as per the table below.
25 and over
Any employers that are paying the minimum wage must increase their rates on the 6th of April 2019 to ensure they remain compliant with HMRC – but don’t forget that the personal allowance will also be increasing to £12,500.00.
Pension Contributions Increase
For those companies that have staff in their pension scheme via automatic enrolment, minimum pension contributions are also due to rise to a total of 8%. This means that for employee contributions these will rise from 3% to 5%, while the employer contributions will go up from 2% to 3%. If you are running your own payroll, ensure that you remember to calculate these correctly in your submissions after the 6th April as the Pension Regulator can be quick to pick up and act on these errors.