How will an increase to total minimum contributions work?

In April 2019, the total minimum contribution for automatic enrolment will increase to 8% – it’s the law. And employers will need to pay at least 3% of this.

We’ll automatically increase the percentages our side for schemes that have been set up on the current minimum contributions (2% employer, 3% employee – that’s 5% in total) and are based on ‘qualifying earnings’ with just one worker group. That’ll ensure any communications sent to new members will include the increased minimum contributions.

What if your scheme isn’t set up on the current minimum contributions (eg different contribution rates, or not based on qualifying earnings, or with more than one worker group)? You will then need to change the amounts manually in your Online Services account. You can find more information on this in our guide.

If your payroll software is assessing your workforce for you (and working out your contributions) you’ll need to speak to your payroll software provider to find out how they’ll make sure you remain compliant.

More information of the minimum contribution increases can be found here.

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