The minimum wage and pension contributions are going up!
Minimum wage increase from 1 April 2019. Main rate up from £7.83 / hour to £8.21 / hour. Go to gov.uk/national-minimum-wage-rates for all the new rates.
Workplace pensions increase on 6 April 2019. Minimum total pension contribution: Up from 5% to 8% tax relief increase from 0.6% to 1%. Minimum employer contribution: Up from 2% to 3%. Employee contributions could go: Up from 2.4% to 4%.
What do I need to do?
If we provide your payroll services, and you’re sticking with the minimum pension contributions, nothing. Let us know if any of your employees need a pay increase.
If run your own payroll, you’ll need to go to Xero > Settings > Payroll Settings > Workplace Pension and update the contributions, and go to Xero > Payroll > [Employee Name] > Employment > Set New Salary & Wages. Remember to include the extra cost in your cash flow plans.
