Auto-Enrolment Pension Increases

We would like to remind you that if you are an employer, under the Pensions Act 2008, the minimum contributions that employers and employees pay into your automatic-enrolment pension scheme will increase from 6th April 2018 and then again from 6th April 2019.
The table below shows the minimum contributions that most employers pay and the dates when they must increase;

Date effective Employer minimum contribution Staff contribution Total minimum contribution
Currently until 5th April 2018 1% 1% 2%
6th April 2018 to 5th April 2019 2% 3% 5%
6th April 2019 onwards 3% 5% 8%

 

From 6th April 2018, the way you calculate and pay contributions into your pension scheme must have changed to reflect these increases. We would suggest that you inform your staff about any increases being applied to their contributions as soon as possible.
The minimum total contribution of 5% from 6th April 2018 can be made up using any combination as long as you, as the employer, contributes at least 2%, for example, it could consist of 5% employer contribution and 0% employee contribution or 4% employer and 1% employee.
Your payroll software will need to be updated with the new rates ready for the first payroll run of 2018/2019.

Please do contact us should you require any assistance.

Geens