Auto Enrolment contribution increases from April 2018


January 31, 2018|In KRW Insight|By Keith Witchell

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:

DateEmployer Minimum ContributionEmployee ContributionTotal Minimum  Contribution
Up to 5 April 20181%1%2%
Up to 6 April 20182%3%5%
Up to 6 April 20193%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.

Sandra Franklin

Practice Manager