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 Contribution | Employee Contribution | Total Minimum 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% |
Key Facts
- 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
For more information on these changes please contact Sandra Franklin or any of our payroll and bookkeeping team.
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