How much should my employer contribute?

 

From 6 April 2018 your employer has to pay a minimum of 2% on what’s known as qualifying earnings into your pension pot. This is the band of earnings used to calculate minimum contributions. Under current legislation this is earnings between £6,032 and £46,350 for the tax year 2018/2019. Qualifying earnings include salary, wages, overtime, bonuses and commission, as well as statutory sick, maternity, paternity or adoption pay.

If for example you’re earning £15,000 then your employer would need to contribute £15,000 – £6,032 = £8,968 x 2% = £179.36 a year. This means that your employer’s minimum monthly contribution is £179.36/12 = £14.95.

Please note that the amount that your employer must contribute will be increasing to 3% from 6 April 2019.

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