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All employers must provide a workplace pension scheme with a minimum 5% employee and 3% employer contributions. The workforce is assessed each pay period with eligible workers automatically enrolled into the company workplace pension scheme:

This is the definition of Eligible worker:

· They are aged between 22 and state pension age

· They earn over the earnings threshold of £10,000 per year (£120 weekly/£833 monthly)

· They mainly work in the UK

Other workers are classed as either non-eligible or entitled workers, these employees must receive a letter providing them the opportunity to join the company scheme if they wish.

Pension Regulator Declaration of Compliance and 3 yearly re-enrolment duties are also legal requirements and we recommend contacting the Pension Regulator if you require further information.

ALL WORKERS are entitled to 5.6 weeks paid holiday a year, this includes:

• Agency workers
• Workers on irregular hours (for example those on zero-hour contracts)
• Part-year workers (for example, those who work term-time only)

It is also worth mentioning that holiday pay must be the employees’ ‘normal wages’ including all pay components they would normally earn, for example, regular overtime or performance-related bonuses must be calculated on a rolling 52-week average and paid on top of their fixed monthly salary.

However, calculating an employee’s yearly entitlement and pay can be very complex, follow current HMRC guidelines or use an HR professional to make sure you are always up to date.

GLX offers payroll packages that include holiday pay calculations for irregular-hour workers and additional holiday pay based on overtime etc. Please contact us directly for further details.

A person’s tax code will usually change in the event of their personal allowance going up or down as decided by HMRC, for example, increase/reduction to taxable benefits, changing or obtaining a second job, or additional income such as receiving state or private pension.

To avoid new employees being placed on an emergency tax code, a P45 must be forwarded to the payroll provider before the first pay is processed. Otherwise, notification will need to be obtained from HMRC regarding year-to-date earnings, tax paid and correct tax code.

You can direct employees to HMRC via the employee helpline or through their personal Government Gateway, should they wish to get further details on their current tax code.

Useful Links: https://www.gov.uk/check-income-tax-current-year

https://www.tax.service.gov.uk/guidance/get-help-understanding-your-tax-code/start/where-do-you-live

https://www.gov.uk/tax-codes/emergency-tax-codes

Employees are eligible for Statutory Sick Pay (SSP) if the following conditions are met:

• They are classed as an employee (including agency workers).
• They have completed some work for the employer.
• They have been ill for at least four consecutive days (qualifying days).
• The employer has been informed within the required timeframe (as per the Terms of Employment, or within seven days if no policy is in place).

Key Changes from April 2025

1. Earnings Threshold Removed: Previously, employees had to earn at least £123 per week to qualify. This requirement has now been removed, meaning SSP is available to lower-paid workers.
2. Updated SSP Rate: The standard SSP rate has increased to £118.75 per week (up from £116.75).
3. Proportional SSP for Low Earners: Employees earning below the former threshold now receive 80% of their average weekly earnings instead of a fixed rate.

When SSP Is Not Payable

If an employee does not qualify for SSP, an SSP1 form must be provided. Common reasons for ineligibility include:

• They are already receiving Statutory Maternity Pay.
• They have exceeded the 28-week SSP limit or had a linked period of sickness for more than three years.
• They do not meet the required sickness duration (fewer than four consecutive sick days).

Placing employees on an annual salary as opposed to being paid based on their hours worked may be more beneficial for both employee and employer, however, we are often asked how these are calculated.

The below is based on a minimum wage for a 21-year-old in the 25/26 tax year:

Given:

• Hourly Rate: £12.21​
• Hours per Day: 7.5​
• Days per Week: 5​

Calculations:

1. Daily Rate: £12.21 (hourly rate) × 7.5 (hours per day) = £91.58​ 
2. Weekly Rate: £91.58 (daily rate) × 5 (days per week) = £457.90​
3. Annual Salary: £457.90 (weekly rate) × 52 (weeks per year) = £23,811.80​
4. Monthly Salary: £23,811.80 (annual salary) ÷ 12 (months) = £1,984.32​