Posted March 14, 2019

From 6th April the minimum pension contributions are increasing

The minimum pension contributions that employers have to pay into their employees automatic enrolment pension scheme is increasing from 6 April 2019. The changes will also affect the amount employees have to contribute into their pensions.

What are the changes?

Until 5 April 2019 the total minimum combined contributions are 5% of an employees qualifying earnings. The current employers minimum is 2% with the employee making up the difference.

From 6 April 2019 the total minimum will increase to 8% of qualifying earnings, with a minimum 3% employer contribution.

I’m an employer, what does this mean for me?

As an employer, you will currently be contributing 2% of your employees qualifying earnings to an automatic enrolment compliant pension scheme.

From 6 April 2019 this minimum will increase to 3%. If you already pay contributions at, or above the new minimum level you may not need to take any further actions.  This is providing your employees are also making sufficient contributions to bring the total amount contributed to their pension to 8% of their qualifying earnings.

As an employer it is your responsibility to ensure that the increases are implemented correctly.

If you need any assistance or advice on how to implement the changes please contact our Payroll Manager who will be happy to assist you, if you are unsure about automatic enrolment please click here to read our handy guide.

If you need more detailed information on the increase in contributions please see:

www.thepensionsregualtor.gov.uk/increases

*The information contained above is provided for information purposes only and is not intended to amount to advice on which reliance should be placed. We therefore disclaim all liability and responsibility arising from any reliance placed on such information. Professional advice should be obtained before taking or refraining from taking any action as a result of the above contents.