Workplace Pension Minimum Contribution Increases from 6 April 2019
The minimum amounts that employers and employees will be required to pay into workplace pensions are due to increase from 6 April 2019. The new minimum
amounts will be 5% from the employee and 3% from the employer. The total minimum contribution will therefore increase from the current 5% to 8% of
Employers are responsible for ensuring the correct minimum contributions are being made. Although there is a minimum contribution rate for employers, they may choose to contribute more than the legal minimum. In such cases, the employee can pay in less as long as the employer contributes enough to meet the total minimum contribution of 8% of qualifying earnings.
The minimum contributions from 6 April 2019 are summarised as follows:
|Employer minimum contribution||Employee Contribution||Tax relief on employee contribution||Total minimum contribution|
|Up to 5 April 2019||2%||2.4%||0.6%||5%|
|From 6 April 2019 onwards||3%||4%||1%||8%|
Employers should tell their employees as early as possible about the increases to their pension contributions, as their pay will be adjusted to account for the changes.
If you would like any additional information regarding the workplace pension minimum contribution increases please don't hesitate to contact our Payroll Partner, Graeme Sheridan, on the details below:Graeme Sheridan
direct dial: 01942 292506
mobile: 07712 679064