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31 January 2018

Auto Enrolment contribution increases from April 2018

By now all existing employers should be aware of Auto Enrolment and should have a qualifying scheme in place.

However, from April 2018 the minimum contributions are due to increase, with the rate tripling for employees from 1% to 3%, while the cost for the employer is also set to double from 1% to 2%.

This is the first step of contribution phasing, with the second step arriving one year later in April 2019.

Here’s a summary of the changes over the next 2 years:

Date                               Employer Minimum               Employee               Total Minimum                                                                                                                      Contribution                  Contribution              Contribution                 
Up to 5
April 2018                                     1%                                 1%                             2%                             

Up to 6
April 2018                                     2%                                 3%                             5%

Up to 6
April 2019                                     3%                                 5%                             8%

For more information on these changes please contact Sandra Franklin or any of our payroll and bookkeeping team.

 

Key Facts:

  1. Auto Enrolment minimum contribution rates increase in April 2018
  2. Employee contributions rise from 1% to 3%
  3. Employer contributions rise from 1% to 2%
  4. Rates will increase again in April 2019

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The Mill, Pury Hill Business Park
Alderton Road, Towcester
Northants, NN12 7LS

emailmail@krwaccountants.co.uk

phone01327 810373

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