Award Increase: Breach of Employment Rights
On 6th April 2019, there will be an increase in awards. The maximum level of a penalty available for an aggravated breach of a worker’s employment rights will increase substantially, from £5,000 to £20,000. This will be applicable to a breach which occurs on or after the 6th April 2019.
Minimum Wage
Further to the budget announcements at the end of October 2018, rate changes to the National Minimum Wage (NMW) have been confirmed for April 2019. These are in line with the recommendations that were made by the low pay commission.
They are as follows:
| Current rate | Future rate (from April 2019) | Increase | |
| 25 years and over (National Living Wage) | £7.83 | £8.21 | 4.9% |
| 21-24 years | £7.38 | £7.70 | 4.3% |
| 18-20 years | £5.90 | £6.15 | 4.2% |
| 16-17 years | £4.20 | £4.35 | 3.6% |
| Apprentice rate | £3.70 | £3.90 | 5.4% |
| Accommodation offset | £7.00 | £7.55 | 7.9% |
The National Minimum Wage is the minimum pay per hour that an eligible worker in the UK is entitled to which depends on their age and the year of their apprentinceship. For further information about the National Minimum Wage (NMW) and the National Living Wage (NLW) visit www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage.
Other Statutory Pay Rates
The following rates have also been confirmed for 2019, and are usually effective from 6th April:
|
Type of payment or recovery
|
2019 to 2020 rate
|
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SSP, Statutory Sick Pay – weekly rate
|
£94.25 for up to 28 weeks
|
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SMP, Statutory Maternity Pay – weekly rate for first 6 weeks
|
90% of the employee’s average weekly earnings
|
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SMP – weekly rate for remaining weeks
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£148.68 or 90% of the employee’s average weekly earnings, whichever is lower
|
|
SPP, Statutory Paternity Pay – weekly rate
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£148.68 or 90% of the employee’s average weekly earnings, whichever is lower
|
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SAP, Statutory Adoption Pay – weekly rate for first 6 weeks
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90% of employee’s average weekly earnings
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SAP – weekly rate for remaining weeks
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£148.68 or 90% of the employee’s average weekly earnings, whichever is lower
|
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ShPP, Statutory Shared Parental Pay – weekly rate
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£148.68 or 90% of the employee’s average weekly earnings, whichever is lower
|
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SMP/SPP/ShPP/SAP – proportion of payments employers can recover from HMRC
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92% if the employer’s total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year
103% if the employer’s total Class 1 National Insurance for the previous tax year is £45,000 or lower
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If you would like some support with Payroll Services, please call HR Solutions on 0844 3245840 or for more information about how we can help visit www.hrsolutions-uk.com/services/payroll-processing.
