The minimum amount paid into the workplace pension both by employers and employees is going to increase. (See Minimum Contribution Rates table below).
Changes will take place in April 2018, and again in April 2019 and is a legal requirement. The change will affect all employers and employees that pay into a workplace pension.
|Date Effective||Employer Minimum Contribution||Employee Minimum Contribution||Total Minimum Contribution|
|Currently until 5th April 2018||1%||1%||2%|
|6th April 2018 to 5th April 2019||2%||3%||5%|
|6th April 2019 onwards||3%||5%||8%|
Employers may be fined by The Pension Regulator if you do not pay the minimum contributions for each staff member.
There is no legal requirement or duties for employers to write to staff about the increases.
However, it is good practice to keep your employees informed, so employers may wish to consider reminding employees of the increase to help minimize queries when the pension increases in April.
For further information about the changes, or pension queries contact your pension provider or check the Pension Regulator Website. https://www.workplacepensions.gov.uk/employee/
Contact the payroll team by completing the form on our website. Alternatively, you can call us on 020 8977 3559 at our Hampton Wick office to speak to an adviser.