The minimum contributions that have to be paid into your Automatic Enrolment pension scheme are increasing from 6 April 2019.
The amount that you and your staff pay into your pension scheme will vary depending on the type of scheme you have chosen and the rules of that scheme. Most employers use pension schemes that currently require a total minimum contribution of 5% to be paid.
By law a total minimum amount of contributions must be paid into the scheme. You, the employer, must make a minimum contribution towards this amount and your staff member must make up the difference. If you decide to cover the total minimum contribution required, your employee will not need to pay anything.
This table shows the minimum contributions you must pay and the date when you must increase:
Employer minimum contribution
Total minimum contribution
Until 5 April 2019
6 April 2019 onwards
It is your responsibility to make sure these increases are implemented.
If you have any queries regarding minimum contribution levels, please contact your local payroll office.
If your staging / duties start date was between 1 April 2016 to 31 March 2017, then now is the time to prepare for re-enrolment.
Every three years you must put certain staff back into a pension scheme. This is called “re-enrolment”.
The action required will vary depending on whether you identify that you have staff to re-enrol, or whether you have no staff to re-enrol. Either way, you will need to undertake a Re-declaration of Compliance to inform The Pensions Regulator how you have met your duties.
What you need to do and by when:
Remember, re-enrolment and re-declaration are your legal duties and if you do not act you could be fined.
If you would like assistance with re-enrolment or the re-declaration process then please contact your local payroll office.