October is set to be a busy month for HR professionals, with new employment laws and changes to existing legislation coming into force. Employers need to be aware of three key changes affecting pay, pensions and retirement:
1. National minimum wage increases
On 1 October 2012, the main rate of the national minimum wage increases from £6.08 to £6.19 per hour.
The youth rate (which applies to workers aged 18 to 20) and the rate for workers aged 16 to 17 will not change this year.
The apprentice rate increases from £2.60 to £2.65 per hour and the accommodation offset, which allows an employer to offset housing costs against the national minimum wage, increases from £4.73 to £4.82 per day.
- National minimum wage rates from 1 October 2012
- Who is eligible for the national minimum wage?
- What rate of the national minimum wage is payable when 1 October 2012 falls within a worker's pay reference period?
- Can employers use tips to count towards payment of the national minimum wage?
2. Pensions auto-enrolment begins
The new duty to auto-enrol eligible jobholders not already participating in a workplace pension scheme into a qualifying scheme or the National Employmen