Minimum Pension Contribution Amounts Are Increasing

//Minimum Pension Contribution Amounts Are Increasing
By Steve Blissett

Under the Pensions Act 2008, the minimum automatic enrolment pension contribution amounts will increase in April 2018 and again in April 2019.

What’s happening and when?

Minimum pension contributions will increase in two phases, on 6th April 2018 and again on 6th April 2019. These increases apply to all employer pension schemes being used to satisfy automatic enrolment duties.

Therefore yours and your employees’ minimum contributions will increase from April next year. You will not need to do anything as your minimum contribution will be automatically increased.

The table below shows the minimum contributions that must be paid, under the qualifying earnings basis, and the dates they must increase.

Date effective Employer minimum
contribution
Employee contribution
(or Employer can pay this)
Total minimum
contribution
Now until 5th April 2018 1% 1% 2%
6th April 2018 to 5th April 2019 2% 3% 5%
6th April 2019 onward 3% 5% 8%

If you have any queries about these increases or how you can manage your auto-enrolment better, get in touch with Accountants4SmallBusiness through either email or phone.

2017-11-17T11:56:23+00:00 November 17th, 2017|Accountancy|Comments Off on Minimum Pension Contribution Amounts Are Increasing