Are you ready for increases in workplace pensions?
- 5th March 2019
Minimum pension contributions are increasing on 6 April. The total minimum contribution including employer and employee payments must be no less than 8% of qualifying earnings. You must pay a minimum of 3%, with your staff paying the additional 5%.
Have you updated your payroll or software to accommodate these changes? Have you informed your staff of the changes?
|Date effective||Total minimum contribution||Employer minimum contribution||Staff contribute the remainder|
|Current rates||5%||2%||Up to 3%|
|6 April 2019||8%||3%||Up to 5%|
If you choose to pay more than the 3% minimum contribution, your staff contribution can drop accordingly, as long as the total contributions meet the 8% of qualifying earnings.
If you already contribute more than 8% into your staff’s workplace pension scheme, or use a defined benefit (DB) scheme for staff auto enrolment, then you do not need to take any further action. And if your staff asked to be put into a scheme that you don’t contribute to, then the increases do not apply.
Any news or resources within this section should not be relied upon with regards to figures or data referred to as legislative and policy changes may have occurred.