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National Living Wage Increase

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Announcing the increase in the Budget in October, the chancellor Philip Hammond said: “From April [the National Living Wage] will rise again, handing a full-time worker a £690 annual pay increase.”

The government accepted all of the LPC’s recommendations for the other national minimum wage to apply from 1 April 2019:

  • increasing the rate for 21- to 24-year-olds by 4.3% from £7.38 to £7.70 per hour
  • increasing the rate for 18- to 20-year-olds by 4.2% from £5.90 to £6.15 per hour
  • increasing the rate for 16- to 17-year-olds by 3.6% from £4.20 to £4.35 per hour
  • increasing the rate for apprentices by 5.4% from £3.70 to £3.90 per hour
  • increasing the accommodation offset by 7.9% from £7.00 to £7.55

Bryan Sanderson, chair of the LPC, said: “The increase in the national living wage to £8.21 in April 2019 will ensure a pay rise for the lowest-paid workers that exceeds both inflation and average earnings."

But what does this mean for your business’ payroll department?

Logosoft offers simple and time-effective methods of updating pay rates for employees. Furthermore, this can be setup in advance, allowing you to relax on Sunday 31 March knowing that your business will be compliant.

Reports are available to highlight contracts that are no longer cost-effective as margins decrease. By recognising the changes in profit uplift, it is possible to protect your business and make charge rate adjustments quickly where necessary. Charge rates can be updated by percentage or amount and can even be applied per contract.

Why stress about living wage changes when, with the click of a few buttons, employees receiving National Living Wage can be identified and their rate adjusted?

If you are a Logosoft customer and require assistance, please visit our Members’ Area or contact our Support Desk on (0)1527 874 977.


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