13 March 2018

Mandatory increase in pension contributions are on the horizon from 6 April 2018

From 6 April 2018, UK employers are required to increase their minimum pension contributions for qualifying workers in defined contribution pension schemes

This means that both employers and their staff will need to pay more into their automatic enrolment workplace pension schemes. It is the employer’s responsibility to ensure that this is implemented.

Column A Column B Column C
Period Employer minimum contribution Total minimum
employer and employee
Before 05 April 2018 1% 2%
From 06 April 2018 to 05 April 2019 2% 5%

Note: The employer can choose either to pay the total minimum contribution in column C, or require the employee to pay the difference between columns B and C.

For further information, please refer to The Pension Regulator Website  or contact your Pension Provider.