Are you prepared for the new financial year which starts next week? I’m sure that you’ve been busy planning your budgets and other financial plans too, so here are a few reminders of what you will need to include if you employ people.
This applies to employees and workers aged from 16 to 24 years of age. The new rates are:
|Apprentices||£3.50 per hour (+10p)|
|Under 18 years||£4.05 per hour (+5p)|
|18 up to 21 years||£5.60 per hour (+5p)|
|21 up to 25 years||£7.05 per hour (+10p)|
This applies to employees and workers aged from 25 years and above. The new is £7.50 per hour, an increase of 30p.
This includes shared parental leave, statutory maternity pay (SMP), statutory paternity pay (SPP) and adoption leave. The new rate is £140.98 per week, an increase of £1.40 per week.
The new rate for statutory sick pay is £89.35 per week, an increase of 90p per week.
A week’s statutory pay for redundancy purposes increases to £489, an increase of £10 per week. This means that the maximum amount that can be paid for statutory redundancy will increase to £14,670. (an increase of £300)
This will be used for claims with a termination date after 6 April 2017. Claims may well be raised in April, May or even June 2017 but if employment ended before 6 April 2017 the old maximum award will apply (£78,962). The new maximum award will be capped at £80,541.
This should come as no surprise, but if your payroll exceeds £3 million then you will have 0.5% of the total payroll cost to go towards the new Apprentice Levy.
Again this shouldn’t be a surprise and you have already planned to report on your pay data if you employ more than 250 staff. Your first report must be published in April 2018 and include all of your pay data dating back to 5 April 2017.
If you employ staff on Tier 2 Skilled Worker visas you will be subject to a new “Skills Charge” of £1,000 for each new visa issued or for each visa renewal. If you are a small business (SME) or charity this charge will be reduced to £364 per new visa / renewal.
Hopefully none of these have come as a surprise for you and your budgets cover these. Also be aware that there are more changes planned to employment legislation over the coming year, so watch this space for more information and updates.