February's Need to Know

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Be Prepared: Auto Enrolment is changing

  • From 6 April 2019, the minimum percentage of salary that you must contribute to eligible employees’ auto enrolment pensions is increasing from 2% to 3%.
  • The overall contributions rise to 8% of salary each month. So for staff, their minimum contributions are rising from 3% to up to 5%, depending on the amount you decide to put in.
  • As the employer it is your responsibility to ensure that these increases are implemented.
  • You’ll need to assess which employees are affected, make the necessary adjustments to your payroll and communicate the changes to your staff.

BEWARE: The Pensions Regulator does have the power to issue fines for non-compliance with April’s rises.

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