Changes to automatic enrolment contributions – Automatic enrolment phasing
The minimum contribution that you and your employees pay into your pension scheme are increasing.
When does the increase take effect?
The minimum contributions are due to increase over two phases. The first increase is from 6 April 2018, and the second from 6 April 2019.
Does this apply to me?
All employers must make sure they pay at least the minimum contributions into the scheme. If you are already paying above the increase minimum amount, you do not need to worry or make any changes.
What are the minimum contribution rates?
The minimum contributions you must pay and when they increase:
|Staff contribution||Total minimum
|Up to 5 April 2018||1.00%||1.00%||2.00%|
|6 April 2018 to 5 April 2019||2.00%||3:00%||5.00%|
|5 April 2019 onwards||3.00%||5:00%||8:00%|
Financial modelling and training
We can help you get ready for these changes, we can:
- Help you forecast the financial impact to your business
- Guide you through the legislation changes
- Show you how to manage the changes in your software
- Provide a report that that you can use to understand how the changes will impact you
- Provide a letter for your employees to inform them about the contribution increase
If you’d like to find out more, call Lauren on 01202 880384 or email email@example.com
If we undertake your payroll we will activate the changes automatically, but we are still conscious that a reminder of the financial impact would be appreciated.
Please do feel free to call should you wish to discuss.