Increases in National Minimum Wage and National Living Wage
The National Minimum Wage is increasing on 1st April 2023
The National Minimum Wage is increasing on 1st April 2023
Rises in minimum wages are welcome news for employees. But employers need to ensure changes are made if necessary, and at the right time.
Several increases to you and your nanny’s National Insurance payments are in the pipeline for April and July 2022.
Until now, au pairs and domestic workers living with a family could be exempt from the minimum wage requirements, but that is set to change.
The Employment Allowance, which exists for certain employers to get a rebate on employer's National Insurance, will increase from £4,000 to £5,000 per annum in April 2022.
It is a legal requirement to have Employers’ Liability insurance as an employer and your policy must cover you for at least £5 million and come from an authorised insurer.
You will have heard or seen the adverts regarding workplace pensions. This means that, with very few exceptions, employers must register with a pension provider from the employee’s start date and enrol their employees, regardless of whether their employees wish to pay pension contributions.
An employment allowance exists whereby certain employers can get a rebate of employer’s national insurance up to £3,000 per annum.
With effect from 6 April 2018, the minimum statutory contributions are changing. The total minimum contribution per employee will be 5% with a minimum employer contribution of 2% (previously 1%).
As an employer, you are normally obliged to pay Statutory Sick Pay (SSP) to a nanny who is sick for 4 or more calendar days in a row, regardless of the length of time that nanny has worked for that employer. No payment of salary or SSP is due for the first 3 days unless it is a term of the contract of employment.