Workplace Pensions – Contribution Increase This April will see the start of increased pension contributions for employers and their staff. The total minimum contribution will rise from 5% total to 8%. Increasing minimum contributions should be a straightforward task for employers but there are checks they will need to make with their pension and payroll providers to ensure their staff are receiving the correct payments.
The vast majority of employers are successfully meeting their duties however The Pensions Regulator (TPR) will take action where an employer is non-compliant, including failing to maintain the correct contributions. TPR research shows staff are continuing to save more. Less than 2% of staff in micro, small and medium businesses asked to leave their pension as a result of last year’s increases to minimum contributions. Although it is not a legal responsibility to tell staff about the changes, employers are encouraged to inform them about the increase.
TPR and the Department for Work and Pensions advertising encourages staff to keep saving, get to know their pension and appreciate the benefits. You can find more information about ongoing employer duties and the increase in minimum contributions on The Pensions Regulator webpage.
Source – hmrc