Are you aware that from 6th April, employer and employee pension contribution minimum amounts are increasing?
All employers with staff in automatic enrolment pension schemes must ensure that from 6th April 2018, the employer minimum contribution is at least 2% and the employee contribution at least 3%. You must ensure that the pension contributions are at or above the new minimums, as well as communicating the increase to your staff.
If you do not have any staff in automatic enrolment pension scheme, or if your contributions are already above the revised minimum amounts, you do not need to take action.
There is a further increase planned on 6th April 2019 as the table below outlines:
|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%|
You may have agreed with your pension provider to calculate minimum contributions in a different way, which will mean applying different increases. If in doubt, check with your pension provider.
Bear in mind that you still need to assess any employee each time you pay them and put them into a pension scheme if they meet the criteria for automatic enrolment.
For support and advice on pensions auto-enrolment, or other payroll or HR queries, contact Business Garage on 01235 433099 or [email protected] If you think your business could benefit from the help Business Garage provides we can arrange a free initial meeting.