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Category ArchiveEmployment

Employees over 22 years old get a pay rise! By taking a pay cut?

Tomorrow, and again April 2019, sees employees over the age of 22 years old get a pay rise. BUT you won’t see it on your next pay slip. In fact, you will likely see a reduction in your net pay. Instead it has been tucked away in your pension.

This is because of auto-enrolment, the scheme which says companies must opt-in their employees (who are over 22 years old and earn at least £10,000 a year) to pay towards a private pension. This is essentially a government mandated savings scheme to provide money for you later in life on top of state pension (whilst signaling the government believes the state pension will not be sufficient to live on when you retire).

For the tax year 2017/18 you contributed 1% of your wage to the scheme with a matched 1% from your employer.

From today, the new tax year, the amount both you and your employer must contribute to the scheme increases from 1% to 2% for the employer and from 1% to 3% for the employee. As this is taken from your pre-tax salary this is less than it seems!

So everyone receives a pay increase but takes home less immediately useable money. This may not suit you if you are dealing with financial hardship and it is possible to opt out.

By opting out it could be viewed as sacrificing short-term gain for long-term pain, but everybody’s circumstances are different. (It can also make sense to opt out if you’ve expensive, ie high interest, debt that you will pay off. But let’s be honest how much of the extra cash in your payslip will go towards paying down the debt? It’s important to know whether you can make this work.)

So that’s the good news and the bad news. More money!! Just not yet.

Be aware that in April 2019 the employee contribution will jump further to 5% and the employer will contribute 3%.

If you are an employee or employer needing help with employment contracts, auto-enrolment or any other employment matter, please don’t hesitate to contact us.

Nothing on this site should ever be considered to be legal advice or research but if you do wish to receive advice on any of the content discussed please contact us on 028 3752 5400 and we will be happy to help you. Please note that whilst we will aim to provide accurate information the world changes at a fast pace so always follow up with your solicitor to ensure you are fully up to date with same. For complete Terms and Conditions please see the relevant section of our website.

Snow Day! The Post That’s 12 Hours Out of Date Already!

 

The Beast from the East has hit.

For the kids it means snow day! For the rest of us it means gutting through snow covered roads, coaxing cars over snow banks, and paying an inordinate amount of attention to Traffic Watch NI. All for the pleasure of repeating the process at home time.

Travel Disruption

If you are affected by cancelled trains don’t worry, you should be entitled to a full refund. The same goes for cancelled flights under EU rule 261/2004 and you could also be due further compensation. I’d thoroughly recommend Martin Lewis’s Money Saving Expert for guides on how to claim without wasting money on solicitors (and you could use your snow day saving money with this brilliant website)!

What if you can’t get to work in the snow?

Strictly speaking your employer doesn’t have to pay you for days you aren’t in work! First port of call, as always in employment matters, is to check your employment contract! If you don’t have a written contract you are entitled to a written statement of terms and your employer must provide you with this if requested. Communication between employee and employer can go a long way to resolving issues before they become more severe.

What if your child’s school is closed and there is nobody else to look after them?

There are provisions whereby you can take unpaid leave to look after your children in emergency situations. Extreme weather should be coveres by this. In all employment matters the following maxim prevails: where both employee and employer are reasonable; it’s better to come to an arrangement that suits both parties!

As a last resort you can always work from home; as I type this in the cosy confines of my kitchen. Always clear this with your employer first of all! The benefits of modern technology can break down traditional work/home barriers (not always a good thing!) and limit disruption to an extent.

Stay toastie!

Nothing on this site should ever be considered to be legal advice or research but if you do wish to receive advice on any of the content discussed please contact us on 028 3752 5400 and we will be happy to help you. Please note that whilst we will aim to provide accurate information the world changes at a fast pace so always follow up with your solicitor to ensure you are fully up to date with same.