From 1st April 2019, the minimum pension contributions under Auto Enrolment will increase to:
(for a majority of pension schemes 4% will be taken due to the tax relief)
The Earnings Trigger (the amount an Employee has to earn to qualify for Auto Enrolment) remains at:
£ 10,000 per annum
£ 833 per month
£ 192 per week
The Qualifying Earnings Threshold (the amount of pay over which an employee attracts pension deductions on) will rise to:
£ 6,136 per annum / £ 512 per month / £ 118 per week
There is an earnings cap known as the “Upper Level of Qualifying Earnings“, above which pension contributions are not payable under the general Auto Enrolment legislation (some pensions schemes may have been adapted to eliminate this). The Upper Level is:
£50,000 per annum / £4166.67 per month / £961.54 per week
No More Staging Dates
Staging Dates for Auto Enrolment have all passed. New Employers now have immediate Auto Enrolment Duties from day one of their first Employee starting work (although a postponement period of up to 3 months from that date can still be applied).
Sole Directors running Limited Companies do not have to automatically enrol themselves into a pension scheme, BUT they must still inform the Pensions Regulator that they are not an Employer and review the situation immediately should they take on staff.
For more information please visit the Pensions Regulator Website.