On 6th April 2018 the minimum contribution for automatic enrolment will increase. This could mean a change in the total you’re contributing to your pension. These changes aim to help ensure that all workers have a sufficient pension when they retire with minimum contributions set to increase to 8% by 2019. Here is what you need to know about these changes…
Where does this contribution come from?
If you are a part of an automatic enrolment pension scheme a percentage of your workplace pension contribution will come from your employer and the rest will come from you and be deducted from your wages. Your current pension contribution total will be detailed on your payslip.
Will this change affect me?
These changes will affect those who are a part of the automatic enrolment pension scheme. Automatic enrolment requires employers and employees to make a set minimum contribution to your pension.
What is the current minimum contribution?
For all qualifying earnings the total minimum contribution for automatic enrolment consists of:
- 1% from the employer
- 1% from the employee
As of 6th April 2018 the total minimum contribution will increase from 2% to 5%. The changes are as follows:
- The minimum contribution for employers will increase to 2%
- The minimum contribution for employees will increase to 3%
For more information about your workplace pension visit: https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay