|Age Group||April 2017||April 2018|
As well as the change to the National Minimum Wage, the planned increase in employer and employee pension contributions comes into place.
Over the last few years all employers have been required by law to automatically enrol their employees into workplace pension schemes. Although it is possible for the employee to opt out, most employees have welcomed the opportunity to save towards their own pension, knowing that the employer is also contributing.
Currently all staff in these workplace pension schemes pay a minimum of 1% of their earnings into their pension scheme and their employer matches that by also paying a minimum of 1%. In April, these amounts will change. Employers will now need to pay at least the equivalent of 2% of the employee’s earnings into the scheme whilst the employee contribution will increase to 3%, effectively adding 5% of the employee’s salary to the pension scheme each year.
In 2019 these figures will increase again, with the employer needing to contribute 3% and the employee’s contribution rising to 5%, so that a total of 8% of the employee’s salary is invested in a pension scheme.
Whether you are ready to take the next step, have an initial enquiry or simply want some general advice, get in touch today to see how we can help