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Increases to National Minimum Wage and Auto-Enrolment contributions effective from 1 April 2019

Salary 250 X 250 250X250
  • 3rd April 2019

Increases in the National Minimum Wage and the Pension auto-enrolment contributions will effect employers throughout the UK.

National Living and National Minimum Wage

With effect from 1 April the National Living Wage (NLW), the statutory minimum for workers who are 25 or over increased by 4.9% to £8.21 per hour. Rates for younger workers also increased above inflation and average earnings as shown below.

National Minimum Wage

Auto-enrolment contributions

Auto-enrolment contributions are set to increase from 6 April 2019. All employers with staff in a pension scheme for auto-enrolment need to ensure the new minimum contribution amounts, effective from 6 April 2019 will be met.

The changes mean that pension contributions will have to total 8% with a minimum of 3% being paid by employers.

Date Employer minimum contribution Staff contribution Total minimum contribution
New Rate: from 6 April 2019 3% 5% 8%
Current rate: to 5 April 2019 2% 3% 5%

Both the changes detailed above will have a significant impact on UK employers. You will therefore need to ensure that your payroll processes are updated ready for these changes.

If we already provide you with payroll services, then you don’t need to worry, we will ensure that these increases are taken into account, unless you have advised us differently.

If you need any advice in relation to these changes or would like to discuss our payroll services, please contact us using our contact form.

Any news or resources within this section should not be relied upon with regards to figures or data referred to as legislative and policy changes may have occurred.