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Did you know you’re likely to give your staff a disguised rise from April!


As January heralds in the new year, you may need to be aware of some financial payments which may affect you as an employer including, of course, domestic staff.

With effect from the new tax year (April 6 ) contributions for the auto-enrolment pension scheme will rise. Your accountant will take care of the changes but, for your information, as the employer you will have to contribute 3% of your employee’s pre-tax salary, a rise of 1% from the present 2%. Enrolment into the scheme is a legal requirement for eligible employees.

Your eligible employee(s) in the scheme will also have to contribute more, with their contribution rising to 5%, a bigger jump, rising 2% from the existing 3% level.

In the case of the domestic employee market where it has long been the case for staff to be paid on a NET basis, the employer will pay both the employer and employee contributions. This has the effect that employees will see a wage rise although their net pay will not be affected.

A full explanation of the “Net Tax Basis” (deducting contributions after tax) is available on The People’s Pension website:…/automatic-enrolment

If you are potentially affected by this you are strongly advised to consult your accountant/financial advisor

The Graham Agency, keeping you informed.



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