New National Living Wage
From 1 April 2016 a new National Minimum Wage (National Living Wage rate) will come into effect.
The rate will rise from £6.70 per hour to £7.20 per hour for all workers aged 25 or over who are not in the first year of an apprenticeship. The National Minimum Wage for workers aged 24 and under will remain the same. Further information on the National Living Wage can be found here.
If you're confused about the difference between the National Living Wage and the Living Wage - as research shows four in ten employers are - you might be interested to read this article.
Increased Income Tax Personal Allowance
On 6 April 2016 the Income Tax Personal Allowance will increase from £10,600 to £11,000 per annum. This means workers are entitled to earn £11,000 per annum before paying income tax.
Further guidance can be found by visiting the website.
Employment law changes: April 2016
Personneltoday.com have developed a useful list of eight employment law changes coming into effect in April 2016:
- The National Living Wage is introduced (see above)
- Penalties for non-payment of the national minimum wage are increased
- A new state pension scheme is introduced, ending contracting out
- Employee NICs are abolished for apprentices under 25
- Public sector employees can be required to repay exit payments
- Financial penalties can be imposed for non-payment of tribunal awards
- A salary requirement is introduced for Tier 2 workers
- Statutory family-related pay and sick pay rates are frozen.
For further information, visit the Personneltoday website
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