After numerous employment law changes being proposed in the last few weeks, we had expected the Government to announce further widespread changes which would affect employment in yesterday’s budget.
In particular, it had widely been expected that the Chancellor would clarify and make announcement in relation to proposed Statutory Sick Pay reforms. But this has not been forthcoming.
For more details on the Employment Law Changes which have been announced, read our blog here
What Did Change?
There are a few changes which will impact employees and employers. We are not tax advisers so can’t advise in relation to this fully, but here are the changes we are aware of:
National Minimum Wage to rise by 6.7%
As announced yesterday, the National Living Wage for people aged 21 or older will rise by 6.7% from £11.44 an hour to £12.21 from next April.
This is higher than the suggestions by the Low Pay Commission, who had suggested it should rise to £12.10.
In addition, the National Minimum Wage will rise for people aged between 18 and 20-years old from £8.60 to £10.
Apprentices hourly pay is the most significant increase; from £6.40 to £7.55
National Insurance to rise to 15% for employers
Employers’ National Insurance contributions will rise from 13.8% to 15%. The threshold will also fall from £9,100 to £5,000.
However, alongside this, Employment Allowance rose from £5,000 to £10,500. The Chancellor stated that this means 865,000 employers won’t pay any National Insurance at all next year and one million will pay the same or less as they did previously.
If you’re an employer, you may have some questions about the upcoming employment law changes and how these might affect your business. If so, please get in touch!
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Disclaimer
Please note this blog is for reference purposes only and is only accurate at which the date it was published. It does not constitute legal advice and should not be relied upon as such. Specific Legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any actions. Please contact us if you have any questions on enquiries@thrivelaw.co.uk.
