pension | Payroll Check

Pension rate changes – April 2019

28 March 2019
by: philip
in: pension TPR
note: 0 Comments

The minimum contributions the employer and your staff pay into your automatic enrolment workplace pension scheme will increase from 6 April 2019.

	Employer minimum contribution	Staff Contribution	TOTAL minimum contribution
New rate: 6 April 2019 onwards	3%	5%	8%
Old rate: 6 April 2018 to 5 April 2019	2%	3%	5%

By law a total minimum amount of contributions must be paid into the scheme. The employer, must make at least the minimum employer contribution towards this amount and your staff member must make up the difference. If the employer decides to cover the total minimum contribution required, your staff won’t need to pay anything.

Further information is available from your pension provider and from The Pensions Regulator:
www.thepensionsregulator.gov.uk/en/employers/increase-of-automatic-enrolment-contributions

Pension Contributions

11 March 2018
by: admin
in: ae automatic enrolment pension
note: 0 Comments

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
www.thepensionsregulator.gov.uk/minimum-contribution-increases-planned-by-law-phasing.aspx