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Increase of automatic enrolment contributions

16 February, 2018

The minimum contributions that you and your staff pay into your automatic enrolment workplace pension scheme are increasing from April 2018.

Minimum contributions are increasing in two phases.

The first increase must be in place from 6 April 2018 and the second from 6 April 2019.

The applies to all employers with staff in a pension scheme for automatic enrolment.

The amount you and your staff pay into your pension scheme will vary depending on the type of scheme you have chosen and the rules of that scheme.

You can find this information in the scheme documents sent to you when you set up the pension scheme or you can speak to your pension provider.

By law, a total minimum amount of contributions must be paid into the scheme.

You, the employer, must make a minimum contribution towards this amount and your staff member must make up the difference.

If you decide to cover the total minimum contribution required, your staff won’t need to pay anything.

From the 6 April 2018 to 5 April 2019, the employer must pay a minimum of 2% and the employee 3% making a total contribution of 5%.

From the 6 April 2019 onwards, the employer must pay a minimum of 3% and the employee 5% making a total contribution of 8%.

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