The minimum auto enrolment pension contributions are set to increase this April, and again in April 2019.
The minimum contribution will increase from 2% to 5%. Employers must contribute a minimum of 2% and employees will contribute the remaining 3%.
On 6 April 2019 contributions will increase again from 5% to 8% and employers will have to contribute 3% and employees 5%.
Both employers and employees can choose to pay more than the minimum contributions if they wish.
If a pension scheme does not increase its minimum contribution levels in line with the legal requirements, it will no longer be a qualifying scheme for existing members, and cannot be used for automatic enrolment.
If you would like further information and guidance, then please contact Lee Reynolds on or Sam Robinson on 01788 539000.