Auto enrolment pension contributions changes

The minimum auto enrolment pension contributions will change in April 2019

Auto enrolment pension contributions changes

For all employers providing a workplace pension and pay the minimum contributions must take note of these changes.

How we help our clients

As part of our payroll procedure we automatically increase the contributions into your workplace pension scheme. This is in line with the statutory increase, for all employees who currently have the minimum deduction. Furthermore, to help with budgeting, each month we send our clients a pension report that shows the employers pension calculations.

The following shows the contribution increases, with the employer paying the minimum contribution.

Based on qualifying earnings:
  • Effective date: 6 April 2019
  • Employer minimum contribution: 3%
  • Staff contribution: 5% (4.0% of net)
  • Total minimum contribution: 8%
This is based on basic pay only:
  • Effective date: 6 April 2019
  • Employer minimum contribution: 4%
  • Staff contribution: 5% (4.0% of net)
  • Total minimum contribution: 9%
paying twice auto enrolment
Paying over the minimum?

If the total auto enrolment pension contributions you are currently paying exceeds the statutory minimum, then you do not need to do anything.

Stay compliant

In summary, Automatic Enrolment represented a massive change to the world of pensions.  When handled correctly they have a range of positive benefits. However many employers underestimate the size of the task in complying with the rules. The penalties are severe and hefty fines are regularly handed out to employers who fail to comply. So make sure you keep up to date with the contribution changes.

Talk to us about how we can manage your payroll.

For more information

For more information on our payroll service, please contact:
Sharon Hewitt, or call us on:

01483 416232