Another above inflation increase to the National Living Wage and National Minimum Wage
The government has accepted the recommendations of the Low Pay Commission and announced increases to both the National Living Wage and National Minimum Wage from April 2026.
The National Living Wage (payable to workers aged 21 and above) will go up by 4.1% from 12.21 to 12.71.
Rates for the hourly National Minimum Wage rates will increase:
The accommodation offset will increase by 4.1%, from 10.66 to 11.10 per day.
These figures are at the higher end of the predicted range published by the Low Pay Commission during the summer. They are all above the expected inflation rates between April 2026 and April 2027, giving workers a real-terms pay rise.
Government to introduce NICs on pension salary sacrifice
The government has confirmed that, from April 2029, both employers and employees will pay National Insurance contributions (NICs) on salary sacrificed for employer pension contributions exceeding 2,000 per tax year.
The change, announced in the Autumn Budget, will not affect employer pension contributions made outside salary sacrifice arrangements – these will remain exempt from NICs.
Employers must report the total amount sacrificed through payroll. The policy will be implemented through primary and secondary legislation introduced in due...
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