The total minimum contribution for automatic enrolment pensions increases from 2% to 5% of qualifying earnings on 6 April 2018, by law.

This contribution will increase again on 6th April 2019 to a total minimum amount of 8%.

As an employer you must ensure that you have increased the amount of their minimum contributions into their staff’s automatic enrolment pension to at least 2% of qualifying earnings. Staff members will have to make up whatever shortfall remains of the new total minimum contribution up to 5%, including the employer’s contribution.

If the employer pays the same as the minimum total contribution then the member of staff will not need to pay any contributions, unless the scheme rules require a contribution.

Both the employer and staff member can choose to contribute greater amounts to the pension if they wish.

If the employer contributes more than their required minimum amount – but less than the total minimum amount – then the staff member only needs to make up the shortfall between the total minimum and the employer contribution.

If you need any further assistance with your pension scheme, contact