What You Need To Know About New Higher Automatic Enrolment Pension Rates
The Minimum contributions that you, as an employer of staff – including domestic and household – pay if you operate an automatic enrolment pension is rising in two phases.
The first, is already in place from 6th April, with phase two the following April. As the employer, it is your responsibility to ensure that the increases – the minimum amounts at least, are implemented. This applies to you, whether you set up a pension scheme for automatic enrolment or you decided to use an existing scheme.
|Date||Employer minimum contribution||Staff contribution||Total minimum contribution|
|Until 5 April 2018||1%||1%||2%|
|6 April 2018 to 5 April 2019||2%||3%||5%|
Does This Apply To You?
However, if you don’t have any staff in a pension scheme for automatic enrolment or you are already paying above the increased minimum amounts you do not need to take any action.
Also, if you operate a defined benefits pension scheme then the increases do not apply.
Your pension provider will advise you on any action you need to take
The Graham Agency, keeping you informed.