Employers’ pension contributions rise to 3%
9th April 2019
More than a million employers have seen the minimum amount they're required to pay towards staff pensions increase from 2% to 3%, under auto-enrolment rules as of 6 April 2019.
Employers are required to automatically enrol workers between the age of 22 and state pension age, and earning more than £10,000 a year, into a workplace pension.
Those employees will also see their minimum contributions increase, as the total minimum employer-employee contribution rises from 5% to 8%.
These contributions are made as a percentage of the employee's qualifying earnings, which in 2019/20 is the portion of their earnings between £6,136 and £50,000.
According to the latest figures released by The Pensions Regulator, a total of 1,477,557 employers have confirmed their compliance with auto-enrolment rules since July 2012.
As a result, more than 10.054 million workers have been brought into workplace pensions, in what Secretary for Work and Pensions Amber Rudd called "an extraordinary success story".
She added that the Government's next step with auto-enrolment is aiming to increase pension saving for more people, including younger workers and the self-employed.
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