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Workplace pension contributions increase

 

Workplace pension contributions have been set by government and are due to increase in April 2018 and April 2019.

From 6th April 2018, the minimum amount you have to contribute into your staff’s pension will increase from 1% to 2% of qualifying earnings.   The minimum contribution from your staff into their pension will also increase from 1% to 3%.

The final increase to pension contributions will take place in April 2019 with minimum contributions of 3% from you and 5% from your staff.

The table below sets out the base employer and employee contributions rates and effective increase dates.

Contribution Levels
Date Effective Employer Minimum Contribution Staff Contribution Total
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%

 

We would recommend that you notify staff of these pending changes, particularly the pension increases coming into effect this April, as this may have a direct impact on an individual’s net take home pay.

 

Angela Clay

Managing Director