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