Delay in automatic enrolment contribution rises confirmed
18 July 2016
As previously announced in the Spending Review and Autumn Statement 2015, to simplify the administration of automatic enrolment for the smallest employers in particular, the next two phases of minimum contribution rate increases will be aligned to the tax years. Instead of increases taking place in October, they will now occur in April of the following year.
Legislation which comes into force on 1 October 2016, The Employers’ Duties (Implementation) (Amendment) Regulations 2016, confirms the delay to the next two scheduled increases in automatic enrolment minimum contribution rates.
Under the current timetable minimum level contributions are scheduled to rise from 2% to 5% in October 2017, and from 5% to 8% in October 2018. These increases will now take effect in April 2018 and April 2019.