Auto Enrolment Pension Contributions Increase


The minimum contributions you and your staff pay into your auto enrolment pension scheme increased on 6 April 2019. This applies to you whether you set up a pension scheme for automatic enrolment or you decided to use an existing scheme.
Please note that it is your responsibility to make sure these increases are implemented.
You don’t need to take any further action if you don’t have any staff in a pension scheme for automatic enrolment, or if you are already paying above the increased minimum amounts.

The previous minimum rate for 6th April 2018 – 5th April 2019 was a total of 5%:
Employer minimum contribution: 2%
Staff contribution: 3%

The rate from 6th April 2019 onwards is a total of 8%:
Employer minimum contribution: 3%
Staff contribution: 5%

By law the total minimum amount of contributions must be paid into the scheme. You, the employer, must make at least the minimum employer contribution towards this amount and your staff member must make up the difference. If you decide to cover the total minimum contribution required, your staff won’t need to pay anything.

When you are calculating contributions you must include the following:
• salary
• wages
• commission
• bonuses
• overtime
• statutory sick pay
• statutory maternity pay
• ordinary or additional statutory paternity pay
• statutory adoption pay

If you have any queries please contact Jackie or Andrew on 01625 524127.

Castletons Accountants

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