By law, on 6 April 2018, you are required to increase the amount of minimum contributions that you make into your staff's automatic enrolment pension to at least of 2% of qualifying earnings. Members of staff will have to pay the shortfall needed to make the total minimum contribution up to 5%, including your contribution.
The minimum contribution levels will rise again on 6 April 2019, with you paying a minimum of 3% towards the pension, and the total minimum contribution reaching 8% - with your staff making up the difference.
Please see below a summary of the required current and future contributions;
|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%|
If you would like to discuss this further, or are concerned about keeping up to date with the upcoming changes, then do not hesitate to contact us.