Auto-enrolment pensions
Minimum contribution amounts payable into auto-enrolment pensions are required to gradually increase at set times.
From 6 April the total minimum contribution increased from 2% to 5% of qualifying earnings and will rise again on 6 April 2019 to a total minimum amount of 8%.
From this April, the minimum contribution from an employee rises to 3% from 1%, while for the employer it rises to 2% from 1%.
From April 2019, the minimum from an employee rises to 5% and for the employer to 3%.
The employer and member of staff can each choose to pay more than the minimum contributions if they wish. If the employer contributes more than their required minimum amount — but less than the total minimum amount — then the employee only needs to make up the shortfall between the total minimum and the employer contribution.