Posted in General News and Newsletters
Contributions were scheduled to rise from 2% of qualifying earnings to 5% from October 2017 and to 8% from October 2018.
Changes announced in the Autumn Statement (2015) mean the rise to 5% will now take effect from April 2018 and to 8% from April 2019. This will help businesses adapt to auto–enrolment and ease administration by aligning to the tax year.
The minimum total contributions based on qualifying earnings are shown in the table below.
| Transition period | 1 | 2 | 3 |
| Duration | Staging Date to 5 April 2018 |
6 April 2018 to 5 April 2019 |
6 April 2019 onwards |
| Employer Contribution | 1% | 2% | 3% |
| Employee Contribution | 1% | 3% | 5% |
| Total | 2% | 5% | 8% |
It is important for both members and employers to plan ahead for the increases starting April 2018.