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The minimum contributions you must pay into your staff’s pension scheme are shown in the table below.

Minimum contributions are being introduced gradually over time.  You will usually pay pension scheme contributions either as a fixed amount or based on a percentage of earnings.

Note that minimum pension contributions only apply to wages paid above the Lower Earnings Limit (LEL) which at 6 April 2019 is £118 per week / £512 per month.

If your employees earn below £10,000 per annum then they don’t need to be auto enrolled into a pension scheme.

 

Change in law

Please note that by law, minimum pension contributions will increase from the 6th of April.

From the 6th April, the total minimum pension contribution (including employer and employee payments), must be no less than 8% of qualifying earnings.

Employers must pay a minimum of 3%, with staff contributing the rest up to 5%.

 

Date

Employer Minimum Contribution

Employee Minimum Contribution

Total Minimum Contribution

 

Up to 5 April 2018

 

1%

 

1%

 

2%

 

 

6 April 2018 to 5 April 2019

 

2%

 

3%

 

5%

 

 

6 April 2019 onwards

 

3%

 

5%

 

8%

 

You will need to check that your payroll system is up to date on 6 April 2019 and is deducting the right minimum contributions.

To find out more about minimum legal pension contributions or auto enrolment in general please visit https://www.thepensionsregulator.gov.uk/en/employers/increase-of-automatic-enrolment-contributions.