Since Pension Auto-Enrolment started in 2012, Employers have been required to make a 1% minimum contribution to their workers’ pension plans (with the worker paying 2%). However, from 6th April 2018 minimum contributions must increase – for Employers to 2% and for workers to 3%. This will be repeated on 6th April 2019 when Employers must make a minimum contribution of 3% and workers 5%.
The ‘qualifying figure’ of £10,000 that workers need to earn to be auto-enrolled (and have their employers make a contribution to their pension) stays the same (as it has since 2014/15).
However, the Lower Earnings Limit increases from £5,876 to £6,032 from 6th April 2018 – this is the figure that staff must earn if they choose to join the auto-enrolment scheme (where they are not automatically enrolled) – again Employers must make a contribution to their pension if they choose to join the scheme.
The Upper Limit on earnings (where Employers do not have to make contributions above this level of salary) increases from £45,000 to £46,350 from 6th April 2018.
Any questions please ask! You can read our full guide to Pensions Auto-Enrolment (and Retirement) here.