Auto-enrolment minimum contribution rises
Posted: 16th March 2018
Employers are reminded that the minimum required contribution levels to auto-enrolment pension schemes or qualifying workplace pension schemes (based on a worker's 'qualifying earnings') increase from 6 April 2018.
From that date, the employer minimum contribution rate will be 2 per cent and the staff minimum contribution rate will be 3 per cent.
There will then be a further increase from 6 April 2019, when the employer minimum contribution rate will rise to 3 per cent and the staff minimum contribution rate will rise to 5 per cent.
Failure to comply will mean that the pension scheme will no longer be a qualifying scheme for existing members and cannot be used for automatic enrolment.
Further information and detailed guidance for employers can be found on the website of the Pensions Regulator.