Over the course of the next two years, by law minimum pension contributions will increase. As the director, it is your responsibility to ensure that these increases are put into place.
How much will the minimum pension contributions be increasing by?
The amount each person pays to their pension scheme varies according to the scheme you are enrolled in and the terms of that scheme. This information can be accessed via your pension provider or by documents sent to you when you established your chosen scheme. The majority of employers use pension schemes that presently require a total minimum of 2% contribution to be paid. This is set to increase to 5% from 6th April 2018 and then to 8% from 6th April 2019 forwards.
Does this law apply to me?
The increase in minimum pension contributions applies to all employers with staff in a pension scheme for automatic enrolment. This applies to you whether you set up a pension scheme for automatic enrolment or if you decided to use an existing scheme.
At MSP, we have a great Payroll team who can assist you with your pension administration and make life a little easier. For further aid please contact our Head of Payroll Kate Furley on 01252 733683 or at Payroll@mspsecretaries.co.uk