National Minimum Wage - From 1st April, Employers will need to pay staff aged 25 and over the National Living Wage (NLW), which will work as a new top rate of the national minimum wage. The national living wage is initially set at £7.20.
National Insurance Contributions - To encourage employers to create more apprenticeships for young people, from 6th April, employers will not pay employer national insurance contributions for apprentices aged under 25.
State Pension changes - From 6th April, a state pension replaces the previous basic state pension and additional state pension. Employer-provided pension schemes will no longer be able to contract out of the state pension and receive a national insurance rebate. Consequently, where a contracted-out scheme was provided, its employer and employee national insurance contribution liability will increase. Given this will have an impact upon an employee’s take home pay, the employer should explain why the employee has a larger deduction from his/her pay for national insurance, if the pension provider has not already done so.
For more details visit: http:uk/news/employment-law-changes-1