The minimum Workplace Pension contribution amounts required by domestic employers is due to increase. This increase should be easy to manage (as long as you are prepared!). Stay ahead of the game with Stafftax’s 5 Step Guide:
A Legal Requirement for all employers!
Workplace Pensions and automatic enrolment is now a legal requirement and must be provided by all employers, including domestic employers. If you are unsure of what this means for you, take a look at our ‘About Workplace Pensions’ page for a quick overview.
When is it due to increase?
The current employer minimum contribution set by the government has been 1%. This is due to rise to 2% on 6th April 2018 and again in April 2019 to 3%.
What do I need to do?
Both the employer and employee can choose to contribute more than the minimum if they wish, but it is the employers responsibility to ensure the pension scheme is a qualifying scheme, and contributions are deducted correctly.
Only pay what you need to!
To save money, the percentage contribution can be paid on something called 'Qualifying Earnings'. Using Qualifying Earnings means that you only pay a pension contribution on part of the gross salary, rather than the whole salary, therefore reducing the amount to pay.
Don't have time to spare?
Find out how we can help take the hassle out Workplace Pensions and Automatic Enrolment, read about our fully managed pension service or contact our Pension Team on 0203 137 4573.