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
April 2018 £7.83 £7.38 £5.90 £4.20 £3.70
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.

 

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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.