On 6th April 2018, the total minimum contribution payable into an auto-enrolment scheme is increasing from the current 2% to 5% with the employer element rising from 1% to 2%.

Staff members will have to make up whatever shortfall remains of the new total minimum contribution.

Both the employer and staff member can choose to contribute greater amounts to the pension if they wish.

If the employer contributes more than their required minimum amount – but less than the total minimum amount – then the staff member only needs to make up the shortfall between the total minimum and the employer contribution unless there is a separate requirement between the employer and employee in the employees contract.

Please ensure you have systems in place to address these increases for payrolls after 6/4/18, and as usual, feel free to contact us if you have any queries.