The auto-enrolment solution for Northern Ireland
Posted in General News and Newsletters
Workers Pension Trust is reminding all employers to be ready for the increased auto-enrolment pension contributions which apply from April 2018.
Both employers and employees need to be aware of how the changes will affect them and be prepared for the increase.
From 6 April 2018, the minimum automatic enrolment pension contribution goes up to 2% for employers and 3% for employees.
We recommend that employers check with their payroll provider to make sure that they are ready to calculate and deduct the increased contributions. If payroll software is not prepared for the increases, the right amount may not be paid across to the scheme on time.
We also recommend that employers write to staff to ensure that they are aware of the increase. Communicating with workers early will help to minimise queries. Click here to view the template Contribution Increase Reminder letter.
You do not need to take any further action if you don’t have any staff in an automatic enrolment pension scheme, or if you and your staff are already paying at least the increased minimum amounts.
Further increases in rates are scheduled for April 2019 when contributions increase to 3% for employers and 5% for employees.
More information on minimum auto-enrolment contributions is available from The Pensions Regulator.