Minimum Pension Contributions – Automatic Enrolment
The minimum contributions under standard auto enrolment workplace pension schemes are due to increase this month. This is the first of two phased increases laid down in the pension regulations.
From 6 April 2018, the minimum contributions will be as follows:
Most pension providers will expect you to use the new contribution rates, if your pay period includes 6 April 2018.
Even if your pay period includes 6 April by one or two days, your pension provider is likely to require you to apply the increased contribution rates for the entire pay period, not just the days on or after 6 April. However, it would be worth checking with your pension provider before running your first payroll that extends beyond 6 April.
If you haven’t already done so, it would also be advisable to make employees aware of the increase.
- It’s your legal duty to make sure that your employees are paying at the least the minimum contributions; and
- You should not encourage employees to opt out – this is unlawful and may result in a fine from The Pensions Regulator
For any help and advice regarding auto enrolment, please contact our Payroll Team on 01467 894085