Under the Pensions Act 2008, the minimum amounts you and your staff pay into your automatic enrolment pension scheme will increase as planned. Here’s what you need to know:
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. If you don’t have any staff in an automatic enrolment pension scheme then you do not need to take any further action to implement these increases.
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?
The table below shows the minimum contributions that most employers pay and the dates when they must increase:
|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. If 5four are your payroll provider then you can rely on us to automatically increase the percentage amounts so you don’t have to worry. You should however let your staff know about any increases being applied to their contributions.
For more information please feel free to give us a call on 01482 428010.