Increases to pension contributions

By law, on 6 April 2018 the level of minimum contributions for automatic enrolment will increase. This will mean a change to the amount clients are contributing to their employees pension.

What’s changing?

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.

From 6 April – 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.