The minimum contributions that you and your staff pay into your automatic enrolment workplace pension scheme are increasing.
Minimum contributions are increasing in two phases. The first increase must be in place from 6 April 2018 and the second from 6 April 2019.
Most employers use pension schemes that currently require a total minimum of 2% contribution to be paid. The calculation for this type of scheme is based on a specific range of earnings. For the 2017/18 tax year this range is between £5,876 and £45,000 a year (£490 and £3750 a month, or £113 and £866 a week).
This table shows the minimum contributions you must pay and the date when they must increase:
||Employer minimum contribution
||Total minimum contribution
|Until 5 April 2018
|6 April 2018 to 5 April 2019
|6 April 2019 onwards
The staff contribution rate may vary depending on the type of tax relief applied by your scheme. If you are unsure check your scheme documents.
The Pensions Regulator gives more details here
It is very important that all employers should know their Staging Date – that is the date when Automatic Enrolment to the Workplace Pension Scheme commences at your workplace.
If you do not know it, it can be easily found – all you need to know in advance is your PAYE reference number, an example of which would be 943/WZ5121A, to be found on any of your correspondence from the Pensions Regulator.
Click here to find your Staging Date
The total number of employers fined for failing to comply with their workplace pensions duties reached 169 by the end of 2014, according to figures released by The Pensions Regulator
The total represents a small number compared to the tens of thousands of businesses which have now complied with their automatic enrolment duties.
A significant number of the notices issued in this period were to employers who had missed their deadline to submit their declaration.
The Pensions Regulator’s Director of automatic enrolment, Charles Counsell, said,
“My message to all employers is that failing to declare within five months of your staging date means you risk being fined, which is why we recommend you start your automatic enrolment planning and preparation 12 months before staging.”