Minimum pension contributions will increase on 6 April 2019

The Pensions Regulator are writing to employers about what they need to do to comply with the automatic enrolment rules.

Their letter says:

"The minimum amounts you and your staff pay into your automatic enrolment pension scheme will increase from 6 April 2019.

How this applies to you

  • If you have eligible staff in an automatic enrolment pension scheme you will need to make sure that at least the minimum amount is paid by you and your staff into the scheme.
  • If you don't have any staff in an automatic enrolment pension scheme, you don't need to take any further action.

The table below shows the minimum contributions payable and the date when they must increase:

Date effective

Employer minimum contribution

Staff contribution

Total minimum contribution

New rate: 

6 April 2019 onwards

3%

5%

8%

Current rate:

6 April 2018 to 5 April 2019

2%

3%

5%

 

 

 

 

 

 

 

 

 

 

 


You may have agreed with your pension provider to calculate minimum contributions in a different way. If this is the case, you will need to apply different increases. To find out what these increases are go to: www.tpr.gov.uk/certified-psn.

What you need to do

From 6 April 2019 you must increase the contributions you pay into your pension scheme. Your pension provider, and if you use one, your payroll software or payroll provider, may be in touch about these changes before they come into effect. You should also let your staff know about any increases being applied to their contributions.

It is your responsibility under the Pensions Act 2008, to make sure the right minimum contributions are being paid for your staff.

If you are already paying above the increased minimum amounts, you do not need to take any further action. For more information go to: www.tpr.gov.uk/increase-psn.

Your ongoing automatic enrolment duties

Remember, as an employer you have ongoing automatic enrolment duties. You still need to assess anyone who works for you each time you pay them and put them into a pension scheme if they meet the criteria for automatic enrolment unless your staff have opted out. Read about these ongoing duties here: www.tpr.gov.uk/ongoing-psn.

Make sure your contact details are correct

So we can continue sending you communications to help you meet your automatic enrolment duties, make sure your contact details are correct by going to: www.tpr.gov.uk/nomination-psn."

(05-02-2019)