A G Smith & Co

Increased Workplace Pension Contributions

Increased Workplace Pension Contributions

Posted on 26/02/2019 by Jordan Smith

By law, the total minimum contributions you must pay into your staff’s workplace pension schemes increase on 6 April 2019. You need to be ready for this increase, to make sure you're paying the correct amounts into your staff’s schemes.

From 6 April, the total minimum contribution including employer and employee payments must be no less than 8% of qualifying earnings. You must pay a minimum of 3%, with staff making up the rest of the 8%.

You can choose to pay more than the 3% minimum contribution if you wish. If you do, your staff won’t need to pay in as much to meet the total minimum contribution of 8% of qualifying earnings.

You should be ready to calculate contributions using the new rates the first time you pay your staff from 6 April.

it should be simple for the new rates to be applied, but you should prepare now by contacting your payroll and software service providers to make sure you are ready.

We recommend that you write to your staff to let them know about the increase in contributions.

Please note, if you already contribute more than the total minimum of 8% into your staff’s workplace pension schemes, or you use a defined benefit (DB) scheme for automatic enrolment, you don’t need to take any action.

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