With the New Year beckoning and the news coverage intensely focused on political and economic uncertainties ahead for the United Kingdom, it only feels right to give you some certainty on what pay changes are coming into effect for workers and employees in 2019.
- New Regulations on Executive Pay Ratio Reporting – 1st January 2019
This new regulation will apply to UK-listed companies with an average of more than 250 employees, where these companies will be required to report annually on the difference in pay between their chief executive and their workers.
There will be three options available to companies on how to calculate these ratio’s and it is likely that each company will be number crunching on the formula’s that may portray them in the best light to the public.
- National Minimum Wage rises – 1st April 2019
The hourly rate of the national living wage is set to increase, as follows:
- Workers aged 25 and over will see an hourly increase from £7.83 to £8.21;
- Workers aged at least 21 and under 25 will see an hourly increase from £7.38 to £7.70;
- Workers aged at least 18 and under 21 will see an hourly increase from £5.90 to £6.15;
- Workers aged 16 or 17 will see an hourly increase from £4.20 to £4.35;
- Apprentices will see an hourly increase from £3.70 to £3.90.
If the HMRC find that an employer has not paid the correct national minimum wage to their workers, they will be sent a notice for the arrears, plus a fine for not paying the minimum wage (it’s worth remembering in 2017 nearly 700 companies were fined around 1.4 million pounds).
- Requirement for payslips to state hours work (where pay varies) – 6th April 2019
This amendment to the Employment Rights Act 1996 will require employers to include the number of hours for which the employee is being paid on his or her itemised pay statement.
This will only apply to when employee’s pay varies according to the time they have worked. Furthermore, the right to receive a payslip has been extended to all workers and not just employees.
The hope is that there will be an increase in transparency over whether employees and workers are being paid correctly, including whether they are receiving the national minimum wage.
In addition to the above changes, there will also be an increase in the rate of statutory sick pay from £92.05 per week to £94.25 per week.
Equally, there will be an increase in statutory maternity, paternity, adoption and shared parental pay from £145.18 per week to £148.68 per week.
Whether you are an employer or worker, we at Liberty Law Solicitors can insure that we will explain and assist you with all of the above pay-related changes coming into effect next year.
Liberty Law Solicitors