From April 2018 Minimum Workplace Pension Contributions are increasing
All employers should have received a letter from the Pensions Regulator, recently, telling them that the minimum amounts that they and their staff need to pay into their automatic enrolment workplace pensions schemes is increasing from April 2018.
This article look at the detail. The increases only apply if employers have put their staff into a pension scheme for automatic enrolment, in which case at least the minimum amount must be paid by the employer and their staff into their schemes.
What are the Increases?
Currently, up until 5th April 2018, the rates are:
Employer minimum contribution = 1%
Employee minimum contribution = 1%
From 6th April 2018 – 5th April 2019
Employer minimum contribution = 2%
Employee minimum contribution = 3%
From 6th April 2019, onwards
Employer minimum contribution = 3%
Employee minimum contribution = 5%
All employers must take action to ensure that at least the minimum amounts are being paid into their automatic enrolment pension schemes.
What do you Need to do as an Employer?
Starting from 6th April 2018, the way you or your payroll services provider must have changed the way you calculate and pay contributions into your workplace pension schemes to reflect these changes.
As an outsourced payroll services provider, we can implement all these changes to your payroll seamlessly and efficiently without you having to worry about it. And, if you are struggling with implementing automatic enrolment, we can help with that too.
Most of our clients are small businesses that often don’t have a dedicated, in-house HR/payroll department, and they can often find the time that this area can take up is considerable.
If you are interested in talking to us about outsourcing your payroll requirements, please contact us or call us on 0121 422 0550 for an initial chat.