The automatic enrolment duties were staged in between October 2012 and February 2018 by employer size, starting with the largest employers. Since October 2017, all businesses employing someone for the very first time have to provide a workplace pension from the first day of their service.

In 2018, the first of two planned minimum contribution increases was implemented. Before April 2018, total minimum contributions were 2% of a band of workers’ earnings, of which at least 1% came from the employer. This rose to 5% in April 2018, of which at least 2% must come from the employer.

On 6 April 2019, the amount that will need to be paid into a workplace pension will increase to an overall minimum of 8%, with employers contributing at least 3% of this.

Date

Employer minimum contribution

Staff contribution

Total minimum contribution

New rate: 6 April 2019 onwards

3%

5%

8%

Current rate: 6 April 2018 to 5 April 2019

2%

3%

5%

The Pensions Regulator has been and is still writing to all employers to remind them of their duties, however these communications only go to the employer, not to their staff.

If you haven’t yet communicated the changes to your workforce, there are letter templates provided on TPR’s website, if you wish to use.

Source: The Chartered Institute for Payroll Professionals (CIPP)

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