Auto Enrolment Rolls on for Another Year
Beginning the 6 April 2018, employers may be required to increase the amount of contributions into their employees’ Auto Enrolment schemes.
The contribution levels will also rise again in a further year’s time, with employers paying a minimum of 3% towards the pension and the total minimum contribution reaching 8%, the employee making up the shortfall.
If as an employer you have already agreed to pay the total minimum contribution, then it will not affect employees, unless the particular scheme rules require an employee contribution. Of course, the employee and employer can agree to contribute more than the minimum, should they wish.
The table below shows the phases of contribution increases:
Dates | Total Minimum Contribution | Minimum Employer Contribution |
Up to 5 April 18 | 2% | 1% |
6 April 18 to 5 April 19 | 5% | 2% |
From 6 April 19 | 8% | 3% |
If you require help in administering your payroll and pension scheme our payroll team will be happy to help.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
