A recent report from the Pensions Regulator shows that fines issued to employers that fail to comply with their auto-enrolment responsibilities have more than doubled over the last two years.

In 2017/18, there were 36,137 fines issued to employers for not complying with the requirements of auto-enrolment – up from 14,708 such penalties in 2016/17.

The Pensions Regulator said this rise has been in line with an increased number of employers with auto-enrolment responsibilities, and does not indicate a widespread issue of non-compliance.

Employers are legally obliged to automatically enrol workers in a workplace pension scheme if they are aged between 22 and state pension age, and earning more than £10,000 a year.

After its introduction in 2012, auto-enrolment was phased in over several stages for different sizes of business, so the number of employers required to comply has gradually increased accordingly.

While more than 500,000 employers had declared their compliance with auto-enrolment by 2016/17, this figure rose to 1.1 million in 2017/18.

From 6 April 2019, employers will see their minimum contribution towards an eligible employee’s pension rise from 2% to 3% and at the same time the employees contribution will increase from 3% to 5% giving a minimum overall contribution of 8%.

Lee Reynolds, Senior Payroll Manager said “Most employers are now aware of their ongoing duties; however, should anyone need advice or support on any auto-enrolment matters, feel free to get in touch!”

Contact us on Rugby 01788 539000