Workplace Pensions – Increase in Contributions

Posted on: February 9th, 2018 by Clive Headon No Comments

Here are some changes that you need to be aware of that are coming soon to your workplace pension contributions obligations, under Auto Enrolment.

If your pension scheme is being used for automatic enrolment, as from the 6 April 2018, all employers by law will be required to increase the minimum contribution that they currently pay into their employee’s pension scheme to at least 2% and employees will have to increase their contributions to 3% to bring the total minimum contribution to 5%. 

As an employer you may have made the decision to pay the total current minimum contribution of 2%, meaning that your employees didn’t have to contribute at all. If you wished to continue with this policy from April 2018 the minimum contribution for the employer will be 5%, alternatively if you wish to keep your contributions at 2% then your employees must make up the shortfall by paying  3%.

The table below demonstrates the phases of contribution increases over the next two years, with the employer paying only their minimum requirement and the employees paying the shortfall to make up the total minimum contribution




For more information on the above changes, please contact the payroll department on 01792 790444 or email [email protected]


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