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Auto Enrolment Contribution Rates Increase from 6th April 2019

Monday, March 4, 2019
By Cheryl Price
Auto Enrolment Contribution Rates Increase from 6th April 2019

The minimum contributions for Auto Enrolment pensions are increasing by law from the 6th April 2019.  As an employer you need to pay a minimum of 3% of your employees salary to their pension, and the total contribution reaching 8% - with your staff making up the rest of the contribution.

 

As an employer you can contribute the full 8% if you'd like to without this becoming a taxible benefit for your staff.  As previously you and your staff can also contribute more than the minimum if you/they want to.

 

If as an employer you choose to contribute more than the minimum 3% your staff will need to contribute the difference to make this up to the total minimum of 8%.

 

The table below confirms the contribution rates:

Auto Enrolment minimum contribution rates

Please ensure all rates are updated for all payruns after the 6th April 2019.

Source: The Pension Regulator