Minimum contributions rise to 3% for employers in April
Most employers in the UK will see minimum contributions towards their workers’ occupational pension schemes rise from 2% to 3% from 6 April.
Businesses are legally obliged to automatically enroll all staff aged between 22 and state pension age, and earning more than £10,000 a year, into a workplace pension.
The first workers were automatically enrolled in October 2012, with staging dates bringing organisations and their employees into workplace pension schemes for the first time.
For the first four-and-a-half years, employers had to match employees’ minimum contributions of 1% into their workplace pension schemes.
But those minimum contribution rates for employers increased to 2% from 6 April 2018, and will rise again to 3% from 6 April 2019 in what is the last planned stage of a phased rollout.
According to the latest research from The Pensions Regulator, almost 1.45 million employers are making minimum contributions towards their employees’ workplace pensions.
In February 2019, the number of employees saving into workplace pensions passed 10 million for the first time.
For further information on Auto Enrolment, please contact James Alesbury on 023 8046 1222.