H2R Selection have put together a summary of the main changes coming into effect…
6 April 2017 – Apprenticeship levy
An apprenticeship levy is coming into force for any public and private employers with an annual pay bill for the previous tax year in excess of £3 million on 6 April 2017. (This is equal to £250k per month). Any employer in this category, whether or not they actually use apprentices, will have to contribute 0.5% if their annual pay bill, calculated on the basis of all payments to employees (including wages, bonuses and commission) that are subject to employer class 1 NICs. Levied employers with apprenticeships will receive an annual allowance of £15,000 to offset against their apprentice costs.
April 2017 – Gender pay gap reporting
All private and voluntary sector employers in England, Wales and Scotland with at least 250 employees will be required to publish information annually about the differences in pay between men and women in their workforces. The information must be based on a ‘snapshot’ of their pay bill on 5 April 2017, and annually thereafter, and the first reports need to be published by 4 April 2018. This reporting requirement is to be rolled out to larger public sector employers in due course.
April 2017 – National Minimum Wage and National Living Wage
From 2017, any changes to the National Living Wage (NLW) rates and National Minimum Wage (NMW) will take place in April.
In November 2016, the government announced in its Autumn Statement that the following NLW and NMW rates would apply from April 2017:
- The rate for workers aged over 25 years (NLW) will increase to £7.50 per hour.
- The rate for workers aged 21 to 24 years will increase to £7.05 per hour.
- The development rate for 18 to 20 year olds will increase to £5.60 per hour.
- The rate for 16 to 17 year olds will increase to £4.05 per hour.
- The apprentice rate will increase to £3.50 per hour.
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