Workplace pension contributions will soon be increasing
As an Employer, who is running a workplace pension scheme, you may be aware that the minimum amounts to be paid into a workplace pension are changing from 6 April 2018.
The table below clearly shows what the new values will be, you have a responsibility to update your payroll to reflect these changes. The Pension Regulator should have already communicated directly with all employers highlighting the changes.
Depending on when the payroll is run, you may find that the change in contributions takes place mid pay period. If this is the case, you’ll need to use the amounts which apply on the last day of your pay period. For example:
• Pay period is 1st- 30th April 2018, you will need to upload a minimum of 5% combined contributions as this is the minimum that is in place on 30th April 2018.
• Pay period is 30th March – 5th April 2018, combined minimum contribution is 2% as this is the minimum that applies on 5th April 2018.
Where an employer is paying the same as the minimum contribution then the employee will NOT need to pay any contributions unless the scheme rules require a contribution i.e. it is a contributory scheme.
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