Minimum workplace pension contribution rates are set to increase from April.
Current contribution rates:
Contributions rates from 6 April 2019:
Employers will need to inform their workers of the increase and ensure that they collect and pay across the new pension contribution amounts.
This is the last of the planned phased increases announced when auto enrolment was introduced. There has been some chatter about possible future changes to the auto enrolment system. This includes the possible removal of the lower earnings limit in the calculation of ‘qualifying earnings’ on which pension contributions are based and the reduction of the age trigger for auto enrolment which is currently 22. We’ll keep you posted!
Contact us today if we can be of assistance with any aspect of auto enrolment. We offer affordable and bespoke payroll solutions for any size of business.