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Pension Contributions

From 6 April 2018 (the start of the 2018/2019 tax year) employers are required to increase the amount of their minimum employer contributions into their staff’s Automatic Enrolment pension to at least of 2% of qualifying earnings. Members of staff will have to pay the shortfall needed to make the total minimum contribution up to 5%, including the employer contribution.


Please ensure that you provide your payroll bureau with information on increases in employee and employer pension contributions for your employees so that the new rates can be operated in the April payroll run.


The Pensions Regulator has provided advice for employers on the April 2018 increase in contributions at www.thepensionsregulator.gov.uk/en/employers/phasing-increase-of-automatic-enrolment-contribution which includes a draft letter to employees to advise them of the increase.   Further information available from The Pensions Regulator on 0345 600 1011 or