As of 6th April 2019, the minimum contributions employers and staff pay into automatic enrolment workplace pension scheme will increase. For most employers, the minimum contribution an employer must make has risen from 2% to 3% and the minimum staff contribution has risen from 3% to 5%, increasing the total minimum contribution from 5% to 8%. You may have agreed with your pension scheme to base minimum contributions on different elements of staff pay. If this is the case, you will need to apply different increases.
The increase applies to all employers with staff in a pension scheme for automatic enrolment. By law, the total minimum amount of contributions must be paid into the scheme and it is the employer’s responsibility to make sure that the increases are implemented.
For further information, click here to download the update from The Pensions Regulator.
If you have any questions about workplace pensions, get in touch with our Employee Benefits team today on 02920 853736 or email email@example.com. We would welcome the opportunity to meet you and discuss, without obligation, the support you need.