Pension Auto-Enrolment - Increase to Minimum Contributions
Posted on 21st March 2018
From 6 April 2018 minimum pension auto-enrolment contributions will increase from 2% (1% employer, 1% employee), to 5% (2% employer, 3% employee). Make sure you are aware of the change and we recommend advising your employees.
Phased in from 2012, and now mandatory for all employers from the moment they take on their first employee, pension auto-enrolment remains a significant burden, particularly for the small employer.
This burden is not only financial, but the additional admin is just another hassle.
We work with employers to try to alleviate this burden through our managed payroll and pensions service We ensure you remain compliant and by embracing the use of technology are able to offer competitive pricing for this solution.
Minimum contributions will increase from 6 April 2018 and again from 6 April 2019 as detailed in the table below.
We strongly recommend employers notify their staff to ensure there are no surprises when they receive their first payslip after the increase!
|
Date |
Minimum Employer Contributions (%) |
Minimum Employee Contributions (%) |
Minimum Total Contributions (%) |
|
Until 5 April 2018 |
1% |
1% |
2% |
|
From 6 April 2018 |
2% |
3% |
5% |
|
From 6 April 2019 |
3% |
5% |
8% |
If you have any queries or require any support with payroll and/or pensions, please get in touch.
Written by:
Nicola J O'Sullivan -
Effective Accounting
Founder | Xero Champion | IR35 Expert
Tagged as: For - Employers
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