A new law means that every employer must automatically enrol workers into a workplace pension scheme if they:
- are aged between 22 and State Pension age
- earn more than £10,000 a year
- work in the UK
This is called ‘automatic enrolment’, or ‘auto enrolment’.
How much you must pay
The amount you must contribute to the pension scheme is determined by the scheme’s rules. However, if you’re using the scheme for auto enrolment there are minimum contributions you must pay.
The minimum contributions that you must pay into your staff’s pension scheme are shown in the table below –
|Date effective||Employer minimum contribution||Staff contribution||Total minimum contribution|
|Old rates, up until 5 April 2018||1%||1%||2%|
|Currently, from 6 April 2018 to 5 April 2019||2%||3%||5%|
|6 April 2019 onwards||3%||5%||8%|
If you are unsure of your ‘staging date’ or have any other questions about auto enrolment then please contact us.