April marks the start of a new tax year and as the new tax year begins the National Minimum Wage and the National Living Wage are rising. This is good news for lower paid workers and will see many workers benefit from an increase in their take-home pay.
From April 2019 the National Living Wage (for workers aged 25+) will increase to £8.21 per hour from £7.83 and the National Minimum Wage which applies to workers aged between 21 and 24 will increase to £7.70 from £7.38.
Coinciding with the increase in minimum wage pension contributions are also rising. When auto-enrolment was introduced the government set out incremental increases in contributions for employers and employees. From 6th April 2019 employer contributions will rise to 3% and employees will contribute 5% meaning that a total minimum of 8% of a workers’ salary will be paid into a pension.
The rise in pension contributions is good news for those who need help with planning and saving for retirement but will mean paying out slightly more each month. As a fully compliant umbrella company we ensure all our employees are enrolled in a pension scheme with our provider NEST. More information on pensions and our scheme is available here.
How this could affect our contractors
Due to these increases the minimum rates that Exchequer Solutions charge will also rise to ensure we remain compliant and can continue to offer the same service and benefits to all of our contractors.
From April 2019 our minimum rates will be as follows
Contractor aged 25 or above
Low margin Umbrella – minimum rate £10.50 per hour
Full margin Umbrella – minimum rate £10.75 per hour
Contractor aged 24 or under
Low margin Umbrella – minimum rate £9.82 per hour
Full margin Umbrella – minimum rate £10.07 per hour
This increase in our minimum rate will enable us to continue to:
- Ensure that contractors receive at least the National Living/ Minimum Wage at all times
- Pay contractors holiday pay
- Pay ERNI to HMRC
- Administer and pay the Apprenticeship Levy
If you have any questions regarding the minimum wage increase, our margins or our pension scheme then please get in touch. If your question relates to our pension provider, NEST, they can be contacted via www.nestpensions.org.uk or via 0300 020 0090. They are open from 8am to 8pm Monday to Sunday and from 10am to 4pm on Bank Holidays.