Autumn Statement 2016-The cost of employment | Wright Vigar

Autumn Statement 2016 – The cost of employment

 In News, Treasury Updates

Mr Hammond was keen to remind the opposite benches that it was the Conservatives who had introduced the National Living Wage. From April 2017, this will increase from the current rate of £7.20 per hour to £7.50 per hour. This applies to employees aged 25 and over.

There are also increases to the National minimum wage for 21-24 year olds which rises to £7.05 per hour, 18-20 years olds which rises to £5.60 per hour and 16-17 year olds which rises to £4.05 per hour. Apprentice wages will also rise to £3.50 per hour.

Money has been pledged to help small businesses understand the rules and to tackle employers who break the law by failing to pay the minimum required.

From April 2017 employee and employer national insurance thresholds will be aligned at £157 per week.  This will cost businesses a maximum of £7.18 per employee annually, but will have no direct impact on the employee’s pay packet.

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