National Minimum Wage, National Living Wage and Pension Contribution rate changes from 1 April 2018
The National Minimum Wage and National Living Wage rates change from 1 April 2018. The current rates and new rates that come into effect on 1 April 2018 are shown below:
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentice|
|April 2017 (current)||£7.50||£7.05||£5.60||£4.05||£3.50|
Apprentices are entitled to the apprentice rate if they’re either:
- aged under 19, or
- aged 19 or over and in the first year of their apprenticeship
Auto Enrolment – Pension Contribution Increase
From 6 April 2018 employer contributions will increase from 1% to 2% of relevant earnings and employee contributions will increase from 1% to 3% of relevant earnings.
There will be no change in the Employment Allowance which remains at £3,000 from April 2018.
If you have any questions on this article of would like to book a free, no obligation meeting then please get in touch.
Blog Author: Rachael Prideaux FCA Bsc (Econ)
Rachael qualified as a Chartered Accountant in 2003, whilst working as an accountant in Newquay Cornwall. She set up Figure Fairy Ltd – an Accountancy firm in Bodmin, Cornwall to help small business owners across Cornwall to understand their numbers, whilst specialising in cloud software to prepare accounts and assist with bookkeeping.