From 6 April 2019, the minimum contributions paid into the automatic enrolment workplace pension scheme will be increasing.
This change in pension regulations will see an increase from 5% to 8% of qualifying earnings.
- The minimum an employer must contribute increases from 2% to 3% of qualifying earnings
- The minimum an employee must contribute increases from 3% to 5% of qualifying earnings
This is a nationwide change that requires all employers to take action, making sure the minimum amount is being paid into their employees’ pensions.
It is not necessary to make any changes if there are no employees in a pension scheme for automatic enrolment, or if contributions are already above the increased threshold.
The maximum basic State Pension is £164.35 per week, dependent on the recipient’s National Insurance record. A personal pension enables an individual to invest additional funds in their future.
If you require advice on these changes, please get in touch with our Payroll experts.