Increase to National Minimum Wage & Auto Enrolment Pension Contributions

National Minimum Wage increase from 2018.

In line with last year, the National Minimum Wage increases on the 1st April 2018. The current rates and the increased rates are shown below:

Age Group April 2017 April 2018
National Living Wage (25+) £7.50 per hour £7.83 per hour
NMW (21-24) £7.05 per hour £7.38 per hour
NMW (18-20) £5.60 per hour £5.90 per hour
NMW (16-17) £4.05 per hour £4.20 per hour
Apprentice NMW £3.50 per hour £3.70 per hour
Accommodation Offset £6.40 per day £7.00 per day

Please note that for Apprentices older than 19 years of age the Apprentice NMW only applies for the first year of their Apprenticeship and then the appropriate pay for their age applies.

Also, from the 1st April 2018, the Statutory Maternity Pay increases from £140.98 to £145.18 per week and Statutory Sick Pay will increase from £89.35 to £92.05 per week.

Auto Enrolment Pensions.

The other, important increase that takes effect from the 1st April 2018 is the minimum contribution rates for your Workplace Pension.

The current and the increased rates are shown below:

Date Employer Minimum Contribution Total Minimum Contribution
Before April 5th 2018 1% 2% (including 1% employee contribution)
April 6th 2018 – April 5th 2019 2% 5% (including 3% employee contribution)
April 6th 2019 onwards 3% 8% (including 5% employee contribution)

DBS will be sending out a letter to all our payroll clients to distribute to their staff so that all their employees are aware of the increase so there are no unexpected surprises!

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