Churches, like all other organisations, need to comply with the National Minimum Wage. Even in times of financial pressure, it is important to ensure that all employees, including any on zero hours contracts, are paid at least the National Minimum Wage and National Living Wage. Churches should be careful to ensure that hourly rates are increased on 6th April 2020 to reflect these increases.
If you have any apprentices, then you should only pay the apprenticeship rate for the first year of the apprenticeship course. After this point, the normal age related minimum wage should be paid.
It’s also important to keep a track of anniversaries so that you are prepared to place employees on the correct rate from the month they trigger a new band of the National Minimum Wage.
Deductions whilst on National Minimum Wage
Apart from statutory deductions such as tax, national insurance and automatic enrolment pension contributions, other deductions should not be made from salary or you risk breaching the National Minimum Wage regulations. If in doubt, call us and we can advise further.
Other statutory payments
Other statutory payments also increase from 6th April 2020. For further guidance about how maternity pay works, view our blog by clicking here. Sick pay guidance is also available here. During the Coronavirus pandemic, SSP can be claimed from day one. You can find other helpful information in our blog section.
The increase in National Insurance will take some 500,000 employees out of the tax altogether which will save employees approximately £85 per year. At a time when finances are stretched, every little helps!
Who are Cornerstone Resources?
Based in South Manchester, Cornerstone Resources blend the experience of being seasoned HR professionals with being leaders in their local church. We support the HR needs of denominations and local churches across the UK. Contact Rob on 07494 161169 or Nicci on 07908 875146 for a consultation on how we can help you. You can also email the office by clicking here. Alternatively click here for a full list of our services.