April 2019 – Rise in Minimum Auto-Enrolment Contributions
On 6th April 2019, the minimum auto enrolment statutory contributions will be rising in April 2019 in line with auto enrolment legislation.
Business owners will need to ensure these increases are implemented and if they don’t act, it could result in fines from The Pensions Regulator.
When does the increase take effect?
Please see below a breakdown of the auto enrolment statutory minimum contributions. The percentages apply to whom is eligible and the minimum qualifying amount an employee has to earn is £10,000 per annum.
From 6th April 2019:
- The employee’s contribution will be increasing from 3% to 5%
- The employer’s contribution will be increasing from 2% to 3%
Who does this apply to?
All employers must act and ensure at least the minimum amounts are being paid in. They can pay more than the minimum if they so wish. However, Employers will not need to take any further action if they are already and will continue to be paying above the increased minimum amounts at the relevant dates or don’t have any staff enrolled in the pension scheme for auto-enrolment.
If you wish to discuss auto enrolment and how we can help, then please contact us on the details provided below: