Pension contribution phasing
On 6th April 2018, the total minimum contributions made by employers and employees will increase from the current 2% (of which at least 1% must come from the employer) to a minimum of 5% (with at least 2% from the employer). From April 2019, they will rise again to a total minimum of 8% (with at least 3% from the employer).
It is important that employer's payroll is ready to deduct the increased contributions when they rise in April 2018 and 2019.
When a member of staff was first automatically enrolled, the letter they received from the employer will have set out that contribution levels will increase over time. There are no additional duties under automatic enrolment for employers to advise members about increases, though they may wish to do so anyway to help minimise queries, or reduce the number of workers subsequently leaving the schemes.
For further information, please visit the Pensions Regulator http://www.thepensionsregulator.gov.uk/doc-library/increases-in-minimum-contributions-automatic-enrolment.aspx
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