There are changes coming from April 2018 which will affect the minimum contributions that must be paid in respect of employees to the workplace pension scheme used for auto-enrolment.
The changes, set out in legislation, will be introduced in two phases, with an increase in the minimum required contributions applying from the start of each phase.
The following figures apply where contributions are calculated using ‘qualifying earnings’.
|Critical dates||Employer minimum contribution1||Employee minimum contribution2||Total minimum contribution|
|Until 5 April 2018|
|6 April 2018 – 5 April 2019|
|From 6 April 2019|
1 The table assumes the employer is paying only the employer minimum contribution. An employer can agree to pay more, but can’t pay less, than this.
2 The employee only needs to pay any difference between the employer contribution and the total minimum.
Employers and employees can arrange to pay more than the minimums.
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