If you have a qualifying pension scheme that complies with Auto Enrolment, please note that minimum percentage contributions are scheduled to increase in April 2018 and again in April 2019. You should shortly receive a letter from the Pension Regulator confirming this change.
What Happens Next?
Where PlusHR are coordinating Auto Enrolment via our payroll partner for you, they will automatically increase your contribution levels to ensure you are compliant with the legislation. If you wish to change the contribution percentages for employees that are automatically enrolled into your qualifying pension scheme, please alert your PlusHR contact.
If you are monitoring Auto Enrolment compliance directly or via your own partner provider, please ensure you process the increases from April 2018, as outlined in the table below:
From April 2018:
Pensionable Earnings (Tiers)
Employee Minimum Contribution (gross)
Employer Minimum Contribution
Total Minimum Contribution
Basic Salary (Tier 1)
3%
3%
6%
Basic Salary subject to 85% rule (Tier 2)
3%
2%
5%
Total Earnings (Tier 3)
3%
2%
5%
Qualifying Earnings (Tier 4)
3%
2%
5%
From April 2019:
Pensionable Earnings (Tiers)
Employee Minimum Contribution (gross)
Employer Minimum Contribution
Total Minimum Contribution
Basic Salary (Tier 1)
5%
4%
9%
Basic Salary subject to 85% rule (Tier 2)
5%
3%
8%
Total Earnings (Tier 3)
4%
3%
7%
Qualifying Earnings (Tier 4)
5%
3%
8%
Please Note: The employer can make up the total contribution, however the employee cannot make up the employers’ minimum contribution.
Manage with Confidence
Got a question? Call our team on 020 3751 4422 or email us at info@plushr.com.
