Total minimum contribution
Employer minimum contribution
Staff contribute the remainder
Date effective
Current rates 6 April 2019
5% 8%
2% 3%
Up to 3% Up to 5%
You should be ready to calculate contributions using the new rates the first time you run payroll from 6 April.
Your organisation may have agreed with its scheme provider to calculate minimum contributions in a different way. This is called certification, and details of what they need to do can be found on TPR’s website.
It should be simple for the new rates to be applied, but you should prepare now by speaking with your payroll team and software service providers, to make sure your systems are ready.
If your organisation already contributes more than the total minimum of 8% into staff workplace pension schemes, or it uses a defined benefit (DB) scheme for automatic enrolment, it doesn’t need to take any action. And if any staff asked to be put into a scheme that your organisation doesn’t pay into, the increases don’t apply to them. Recorder webinar TPR ran a webinar on 18 March, where its expert panel talked about the upcoming contributions increases. A recording of the event is available – you just need to register here.
Visit TPR’s website for any further information you may require.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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