Stopfords
Stopfords

National Minimum Wage & Pension Increase

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You may have already received reminders that the statutory minimum pension contributions will be rising again on 6th April 2019 and you should be aware that again, the national minimum wage & national living wage are increasing from the 1st April 2019 too.

If you’re using qualifying earnings as your pensionable pay, from 6th April 2019 your pension contributions as an employer must be at least 3% and the total contributions must be at least 8% (previously 2% & 5% respectively). The 5% difference will be employee contributions, unless you as an employer choose to contribute more than the minimum 3%.

The employee contributions may include the government’s tax relief if this is how your schemes contributions are paid. If you do not use qualifying earnings as pensionable pay, for example, contributions are calculated on salary only; your minimum percentages may vary.

From 1 April 2019 the minimum wage will increase to the following amounts:

—NewOld
Apprentices*£3.90£3.70
16-17£4.35£4.20
18-20£6.15£5.90
21-24£7.70£7.38
Living Wage——
25 & Over£8.21£7.83

*This rate is for apprentices under the age of 19. Any apprentices aged 19 and over must only receive this rate in the first 12 months of apprenticeship, after which the rate applies to their age.

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