Farmers told to be aware of Living Wage and Minimum Wage changes

Farmers have been told to be aware of changes to the National Living Wage and National Minimum Wage that come into effect from 1 April.

There is also an increase in employer contributions under pension auto-enrolment of 1% from 6 April.

The National Living Wage, which is obligatory, applies to most workers in the United Kingdom aged 25 and over.

It came into effect on 1 April 2016 and as of 1 April 2018 increases from £7.50 to £7.83/hour, an increase of 4.4%.

The National Minimum Wage, applying to most of those below age 25 increases to £7.38 from £7.05/hour (age 21 – 24); £5.60 to £5.90/hour (age 18 – 20); £4.05 to £4.20/hour (age 16 – 17); and £3.50 to £3.70 for the Apprentice National Minimum Wage.

Employers are also advised that their contributions under pension auto-enrolment increase to 2% from 6 April 2018, and by a further 1% from April 2019 onwards. Employee contributions increase to 3% and 5% respectively at those same dates.

Martyn Dobinson, Director at Saffery Champness in Manchester, said: "We were aware last year of a number of instances where HMRC was carrying out compliance checks in the rural sector to see that minimum wage levels were being met. We have no reason to believe that that inspection regime will not continue.

"We are therefore urging all employers to be aware of the correct minimum wage levels after the changes come into force and to be sure that their records are correct and up to date.

"In the rural sector there can be complications for example with beaters, casual workers and temporary staff and where there is any doubt then professional advice should be sought."

When the National Living Wage was announced in 2016, a report stated how the introduction of it is putting the future of British fruit farmers at risk and threatens to wipe out 58% of growers' profits.