NEWS

Minimum contributions rise to 3% for employers in April

Published:
24
March 2019

Most employers in the UK will see minimum contributions towards their workers’ occupational pension schemes rise from 2% to 3% next month.

Businesses are legally obliged to automatically enrol all staff aged between 22 and state pension age, and earning more than £10,000 a year, into a workplace pension.

The first workers were automatically enrolled in October 2012,with staging dates bringing businesses and their employees into workplace pension schemes for the first time.

For the first four-and-a-half years, employers had to match employees’ minimum contributions of 1% into their workplace pension schemes.

But those minimum contribution rates for employers increased to 2% from 6 April 2018, and will rise again to 3% from 6 April 2019 in what is the last planned stage of a phased rollout.

According to the latest research from the Pensions Regulator,almost 1.45 million employers are making minimum contributions towards their employees’ workplace pensions.

In February 2019, the number of employees saving into workplace pensions passed 10 million for the first time.

Guy Opperman, minister for pensions and financial inclusion, said:

“We are creating a nation of responsible employers who are reassuring their workforce that with their support, they will have a secure retirement.

“We are committed to working closely with them to ensure even more people can benefit from a workplace pension in the future.”

Workplace pensions form part of our payroll service.
Business news
Finsbury Robinson

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare.

Contact Us

Sign up to our
Monthly Business Newsletter

Sign up to receive our monthly Business Newsletter that will keep you up to date with everything going on in accounting, tax, and finance. 

Finsbury Robinson Services

Sign up to our Monthly Business Newsletter

Find News Articles by Category

© Finsbury Robinson Ltd 2019

Registered Company No.  04749693

News HomeAuto Enrolment
Minimum contributions rise to 3% for employers in April
Show/Hide
To get in touch use our Quick Contact Bar:

Monday                 8:30AM – 5:30PM
Tuesday                8:30AM – 5:30PM
Wednesday          8:30AM – 5:30PM
Thursday              8:30AM – 5:30PM
Friday                 9:00AM – 12:30PM
Saturday                                 Closed
Sunday                                   Closed

Finsbury Robinson
237 Westcombe Hill
Blackheath
London
SE3 7DW