Businesses should be ready for minimum wage change

HR Team Managing Director Breda Cullen said companies should be finalising the required changes ahead of the April 1 amendments to the legal requirements.

From next month, the minimum wage (also known as the national living wage) for employees over 25 years-old will rise to to £7.50 and to £7.05 for those aged between 21 and 24.

Workers aged 18-20 will also see an increase to £5.60 an hour.

“Unlike in previous years when changes came into effect in October, these changes will be introduced on April 1 and it’s vital employers are aware of this,” Ms Cullen said.

“Now is the time to make changes to payrolls, adjust salaries and wages. Businesses need to ensure they stay compliant with employment legislation to avoid any risk.”

She said it is imperative the transition is as smooth as possible and urged employers to ensure employees details are up to date, and that payroll and timesheets are accurate.

There will also be changes to a raft of other entitlements including Statutory Maternity Pay, Statutory Paternity Pay, and Statutory Shared Parental Pay.

The weekly rates of statutory maternity and paternity pay as well as statutory shared parental pay will to go up from £139.58 to £140.98

Statutory Sick Pay rates will also increase from April 2017 from £88.45 to £89.35.

“Not only do employers need to be aware of this raft of changes but they must also have measures in place to adjust to these new requirements,” Ms Cullen added.

Employers looking for further information and advice can visit hrteamservices.com or contact HR Team on 028 71 271882.