UK. Pensions – auto-enrolment contributions edge upwards
We are now seven weeks from the first hike in the “minimum” requirements for auto-enrolment compliance (6 April 2018). In practical terms, for employers currently applying those statutory minimums this means that your employees will see an increase in their pension contributions from one per cent of their annual earnings between £6,032 and £46,350 (based on the 2018 figures) to three per cent.
This could come as something of a shock for employees who didn’t read the fine print on their auto-enrolment announcements as it will mean less money in their April pay packet (though more going into their pension savings).
There’ll also be an increase in the amount you have to pay in as an employer from one per cent of those banded earnings to two per cent.
Read More: Lexology
