Increased Contributions from 6 April 2018
Employers may be required to increase the amount of their contributions into their automatic enrolment pension.
Under the Pensions Act 2008, the minimum amounts employers and employees pay into their automatic enrolment pension scheme increase from 6 April 2018.
The minimum contributions are as follows:
|Date Effective||Employer Minimum Contribution||Staff Contribution||Total Minimum Contribution|
|Currently until 5 April 2018||1%||1%||2%|
|From 6 April 2018 to 5 April 2019||2%||3%||5%|
|From 6 April 2019 onwards||3%||5%||8%|
Unless the employer contributes more than their required minimum amount they must increase the minimum contributions from 6 April 2018 to make sure that at least the minimum amounts are being paid into their pension scheme.
The Pension Regulator states that although there is no legal requirement to write to staff about these increases, they suggest employers consider reminding them of these increases to help minimise queries.
Should you require any assistance with this or any other payroll query, please contact Elaine Simmons or Gordon Gruppetta on 0113 2574506.