Posted: 22, February 2021 by Amy Richardson
National Minimum Wage:
As you may be aware, as of 1st April 2021 the National Minimum Wage is due to increase, new rates are as follows:
|
Age |
23 and Over |
21 - 22 |
18 - 20 |
16 – 17 |
Apprentice |
|
Hourly Rate |
£8.91 |
£8.36 |
£6.56 |
£4.62 |
£4.30 |
Please ensure that all staff members are on pay rates that comply with National Minimum wage and adjust accordingly after the staging date. If your staff member should be under National Minimum wage after this date, we will have to adjust their rate in order to comply before returning wages.
Personal Allowance:
The new Personal Allowance for the 2021/2022 tax year has increased to £12,570.00 per year. Therefore, this will be £1048.00 per month or £242.00 per week. This equates to an extra £70.00 tax free for the year from 2020/2021.
Pension Contributions:
Pension contributions will remain the same as 2020-2021.
|
Employer Contribution |
Staff Contribution |
Total Contribution |
|
3% |
5% |
8% |
These will automatically be deducted from staff members as part of the automatic enrolment pension scheme.
Directors Salary:
The new optimum rate for a director’s salary from the 6th of April will be, £8,840.00 per annum. Therefore, this will equate to £737.00 per month or £170.00 per week. We will automatically update your director’s salary for payroll processing. If you have a Standing Order for your wage, please ensure to adjust this accordingly from the 6th of April.