MINIMUM PENSION CONTRIBUTIONS WILL SOON BE INCREASING
See video below:
- The minimum contributions employers and their employees pay into automatic enrolment workplace pension scheme will increase from April 6th, 2019. It is the employers’ responsibility to make sure these increases are implemented.
- Auto enrolment statutory minimum contributions are detailed below. These are based on qualifying earnings. For the 2019/2020 tax year, this range is between £6,136 and £50,000 a year (£512 and £4,167 a month, or £118 and £962 a week).
|Date||Employer minimum contribution||Employee contribution||Total minimum contribution|
|Before April 5th, 2018||1%||1%||2%|
|April 6th 2018 – April 5th 2019||2%||3%||5%|
|April 6th 2019 onwards||3%||5%||8%|
- By law a total minimum amount of contributions must be paid into the scheme. You, the employer, must make at least the minimum employer contribution towards this amount and your employees must make up the difference.