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Minimum pension contributions will soon be increasing

Posted on 17th August 2017 by Alexis Outram - What's trending?

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Under the Pensions Act 2008, the minimum amounts you and your staff pay into your automatic enrolment pension scheme will increase as planned.

Does this apply to me?

If you have put your staff into a pension scheme for automatic enrolment you will need to make sure that at least the required minimum amount is paid by you and your staff into the scheme.

When do I need to make the increases?

You must increase the minimum contributions from 6 April 2018 and then again from 6 April 2019. All employers must take action to make sure at least the minimum amounts are being paid into their automatic enrolment pension schemes.

What are the increases?

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

What do I need to do?

From 6 April 2018, the way you calculate and pay contributions into your pension scheme must have been changed to reflect these increases. Your pension provider, and if you use one, your payroll software or payroll provider, may be in touch about these changes before they come into effect. You should also let your staff know about any increases being applied to their contributions.

For all Streets Payroll clients these changes will be made automatically so you do not need to take any further action to implement these increases.

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