Are you ready for the increase in pension rates ?
From the 6th April 2018, auto enrolment pension rates are going to increase. It’s important that you’re ready for these contribution increases so that the correct amounts are deducted from your payroll at the right time if you are employer. If you are an employee, you will be paying higher contributions so you need to be ready.
The current legal ‘total minimum contribution’ for automatic enrolment based on qualifying earnings is 2%: 1% of which must come from the employer with the remaining 1% made up by the employee (and tax relief of .02% by the UK Government).
From 6 April 2018, by law, this will increase to 5% in total, with 2% coming from the employer, and the remaining 3% made up by the employee (and tax relief).
Higher contributions commence from the beginning of the pay period that includes the 6 April 2018. For example, if the pay period is 1st to 30th April 2018, higher contributions start from 1 April 2018.
For those who look after, you won’t need to worry about a thing. We will make sure your wages are fully compliant.
Our podcast might make it easier for you to understand;