As of the 6th April 2019 the minimum contributions for automatic enrolment has increased.
Employer Contribution (Min.) 3%
Employee Contribution 5%
Total Contribution (Min.) 8%
As an employer, it is your individual responsibility to make sure these increases are implemented. As it is your legal duty to ensure the right minimum contributions are being paid you could receive a fine if these are not correct.
You don’t need to take any further action if you if you don’t have any employees in a scheme for automatic enrolment or you are paying above the minimum contributions.
By law the employer must contribute a minimum of 3% towards the total contributions. You can decide to cover the total minimum contribution required meaning that your staff will not need to pay anything.
For a pension scheme calculated on qualifying earnings, the earnings band has increased, and the range is between £6136 and £50,000 a year (£512 and £4167 a month, or £118 and £962 per week).
If your pension scheme uses an alternative way to calculate the contributions, you will need to apply the different increases. Further details of this can be found on The Pension Regulators website.
It is advisable to write to your employees to let your staff know about the changes. To assist with this, a template letter can be found on The Pension’s Regulator website.