The law has changed regarding workplace pensions. Introduced in the Pensions Act 2008 and phasing in from 2012 to October 2018, every employer must have a qualifying auto enrolment pension scheme in place for their employees and contribute in to it. The change was bought in to help ensure workers would have enough to retire on as the government may not be able to keep the state pension at its current level long term.
Regardless of industry or company size, if you have at least one employee you have legal duties to adhere too.
Depending on your employee’s eligibility there will be minimum contributions that both employee and employer will need to make. The minimum amount will increase from April 2018 as below:
|Date of increase||Employer Minimum Contribution||Employee Minimum Contribution|
|Up to 5th April 2018||1%||1%|
|6th April 2018 – 5th April 2019||2%||3%|
|6th April 2019 – onwards||3%||5%|
Every employer will be sent a letter from The Pensions Regulator advising them of their staging date. However, if you have your PAYE reference number you can use our own online tool to obtain this date.
Further information relating to your employer duties can be found on our site and we would also advise you to visit additional resources such as The Pensions Regulator.