CEO Pay Gap
Since the 1st January 2019, it is now a mandatory requirement that companies with over 250 staff are required to issue a report providing a ratio of CEO pay and average staff pay. This is intended to force reductions in CEO packages and help raise the average salary of those large companies.
Also, from the 1st January 2019 (or from the start of their financial year) listed companies are required to adopt an employee engagement scheme. This can be achieved by appointing a director from the workplace to manage engagement, by creating a workforce advisory panel or by designating a non-executive director to oversee employee engagement. The intention of the scheme is to provide lower level employees with the opportunity to have more involvement in larger businesses where it is often limited.
Gender Pay Gap Reporting
On or before 4th April 2019 private sector organisations with more than 250 employees must publish their second Gender Pay Gap reports with a snapshot date of 5th April 2018 for the calculations. This obligation also applies to companies who had 250 staff for the first time on 5th April 2018 but did not have to report last year.
Pay Slips and Pay Statements
From 6th April 2019, companies will be required to provide detailed payslips outlining the number of hours worked for those staff who are hourly paid.
Companies will also be required to provide itemised payslips to workers as well as employees.
New Hourly Rates from April 2019
- Maternity/Paternity/Shared Parental/Adoption Pay – £146.68 per week
- SSP – £99.25 per week
- Lower Earnings Limit – £118 per week
- National Living wage – £8.21 per hour
- 21 – 24 years old NMW – £7.70 per hour
- 18 – 20 years old NMW – £6.15 per hour
- 16 – 17 years old NMW – £4.35 per hour
- Apprentice rate (during first year) – £3.90 per hour