Are you aware that pension contributions are changing again soon? The second phase of increases to pension contributions is due in April 2019. Don’t get caught out.
The government is encouraging people to save more for pensions by increasing the minimum contributions for auto-enrolment pensions, both for employers and staff.
The first phase was implemented in April 2018 and the next is due in April 2019. You will need to be ready for this change and ensure that contributions are uplifted accordingly as per the table below:
|Date||Employer minimum contribution||Staff contribution||Total minimum contribution|
|Current rates from 6 April 2018 to 5 April 2019||2%||3%||5%|
|6 April 2019 onwards||3%||5%||8%|
While you are preparing for the change in minimum contributions, it is also worth double-checking when to expect your re-enrolment duties. Read our previous article about pensions re-enrolment.
Business Garage provides a professional and expert payroll and HR service to clients which includes pensions administration. Contact us on [email protected] or 01235 433099 for a free initial consultation.
The Pensions Regulator is the UK regulator of workplace pension schemes: http://www.thepensionsregulator.gov.uk