What you need to know
From 6th April 2019, the total minimum contributions including employer and employee payments will be increasing from 5% to 8% of qualifying earnings. As an employer you will need to pay a minimum of 3% with your staff making up the rest to 8%. This increase is required by law.
|Date effective||Total Minimum Contribution||Employer Minimum Contribution||Staff contribute to the remainder|
|Current Rates||5%||2%||Up to 3%|
|6th April 2019||8%||3%||Up to 5%|
What you need to do next
If we process the payroll on your behalf then we will automatically apply the new rates, should you process your payroll yourself, we would suggest you contact your software service provider, to ensure you will be ready to start using the new rates the first time you pay your staff after the 6th April 2019.
We would also suggest you inform all your staff of the changes to the minimum contributions to their pensions.
Please note that if you are already contributing more than the total minimum of 8% into your staff workplace pension scheme or you use a defined benefit (DB) scheme for automatic enrolment for your staff, you do not need to take any further action.
Should you require any further information or assistance regarding the above, please do not hesitate to contact us.