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From April 2018 changes are being made to auto enrolment rates. Employers will need to make arrangements to ensure that their qualifying pension schemes comply with the increases in the legal minimum contribution rates.

The minimum contribution rates are as follows:

Date Effective Employer Minimum Contribution Staff Contribution Total Minimum Contribution
Currently until 5 April 2018 1% 1% 2%
6 April 2018 to 5 April 2019 2% 3% 5%
6 April 2019 onwards 3% 5% 8%

There are no additional duties under automatic enrolment for employers to advise members about these increases but doing so before the increases are implemented will help minimise queries from members and help reduce the number of workers from leaving their schemes. Your pension provider may provide this information directly to the scheme members as part of their service.

For further information about Auto Enrolment, to understand your obligations, or to discuss your payroll requirements generally, please contact Katrina Offord, Payroll Manager, on 01305 215800.