Salary Increase Set For 2019
Employees in the UK are expected to receive a salary increase in 2019. But don’t break out the champagne just yet! The latest Salary Trends Report from ECA International reports that salaries are expected to increase 0.8 per cent. That’s the equivalent of almost £20 a month or £237.35 per annum for the average worker before taxes are deducted.
It may sound like a modest increase but it’s actually double the 0.4 per cent rise in salary that UK workers received in 2018. Real salary is based on the difference between the forecast nominal wage increase (3 per cent) and the rate of inflation (2.2 per cent).
The expected salary increase in the UK is in line with much of the rest of Europe. If you’re an employer, it’s still not too late to start making preparations to ensure your employees are paid the right amount.
Here’s the data on forecast salary increases in Europe:
How Employers Can Stay Prepared
Payroll is crucial for a business to function. As an employer, it’s your responsibility to ensure employees get paid on time for their work. That means recording their wages and also paying the required deductions to HRMC.
PAYE (Pay As You Earn) is the system used to collect taxes and is a legal requirement for all businesses in the UK. There are accountants that offer payroll-processing services. But a more cost-effective solution is to set up payroll yourself using software to produce payslips for each employee and automatically report those figures to HMRC.
Practical Software offers software that makes it easy for employers to set up a salary increase. Features include complete payroll processing and automatic calculations for all required deductions. So you can automate your back-office needs and focus on growing your business.
Call us today on 0330 124 3506 to book a demonstration of how our software can benefit your business.