Employers will benefit from new legislation for younger workers
Those employers with staff under the age of 21 will be benefiting from the change announced by George Osborne to National Insurance Contributions. As of Tuesday 6th April, as long as the employee is earning less than £42,285 each year, under 21’s no longer need to make National Insurance contributions
For employees earning £16000 and aged under 21, the new ‘M’ code for National Insurance will save the employer £1000 per annum.
Whilst excellent news for those making savings, comments have been made that this legislation could discriminate against over 21s, who are now going to be more expensive to employee than those under the age of 21. However, it should be noted that this change was implemented because of the large amount of unemployment in this age group.
Recruiters should remember that discrimination claims can arise as a result of age enquiries during the recruitment process and should avoid claims by not using this as a factor in their process. If you’d like further information on the latest legislation for contractors please contact Green Lantern on 0207 164 2116.