Are your clients ready for the increases in contributions on 6 April 2018?
27 March 2018
For those of you who are business advisers, The Pensions Regulator has helpful guidance on their website, including a letter template that your clients can use to communicate the increases to their staff.
By law, minimum contributions for workplace pensions are increasing on 6 April 2018, as the table below shows.
All employers with staff in a pension scheme for automatic enrolment must take action to ensure that at least the minimum amounts are being paid across.
|
Date effective |
Employer minimum contribution |
Staff contribution |
Total minimum contribution |
|
Until 5 April 2018 |
1% |
1% |
2% |
|
From 6 April 2018 |
2% |
3% |
5% |
|
From 6 April 2019 |
3% |
5% |
8% |
Are you a pension, payroll, or software provider?
If so, The Pensions Regulator has a dedicated web page to support pension, payroll and software providers with the minimum contribution increases, which you may find more useful.