The minimum amounts you and your staff pay into your automatic enrolment pension scheme will increase from 6 April 2019.
How this applies to you
- If you have eligible staff in an automatic enrolment pension scheme, you will need to make sure that at least the minimum amount is paid by you and your staff into the scheme.
- If you don’t have any staff in an automatic enrolment pension scheme, you don’t need to take any further action.
The increase
The table below shows the minimum contributions payable and the date when they must increase:
| Employer minimum contribution | Staff contribution | Total minimum contribution | |
|---|---|---|---|
|
New rate: |
3% | 5% | 8% |
|
Current rate: |
2% | 3% | 5% |
What you need to do
It is your responsibility under the Pensions Act 2008, to make sure the right minimum contributions are being paid for your staff. If you are already paying above the increased amounts, you don’t need to take any further action. You should also let your staff know about any increases being applied to their contributions.
Your ongoing automatic enrolment duties
Remember, as an employer you have ongoing automatic enrolment duties. You still need to assess anyone who works for you each time you pay them and put them into a pension scheme, if they meet the criteria for automatic enrolment, unless your staff have opted out.
For advice on your workplace pension responsibilities, please contact us.
