Don’t put it off! Auto-Enrolment contributions are increasing again
The minimum amount employers and employees must pay into their Defined Contribution (DC) schemes in relation to Qualifying Earnings is increasing again.
From 6th April 2019:
- The minimum contribution for employers will increase from 2% to 3%.
- The minimum contribution for employees will increase from 3% to 5%.
- This takes the total minimum contribution from 5% to 8%.
- The contributions are based on earnings between the National Insurance Lower Earnings Limit (£6,136) and the Higher Earnings Limit (£50,000).
It is the employer’s responsibility to ensure that the increase is implemented whether you are using a pre-existing scheme or one you set up for Auto-Enrolment.
The contributions employers and employees must make each month has been increasing in phases since the start of Auto Enrolment, with the next increase scheduled for April 2020.
What is Innes Reid doing to help?
Our specialist advisers are here to help you prepare for this increase. If you do not yet have a plan in place and would like some support, please do not hesitate to get in touch. We can also help with setting up Auto-Enrolment for the first time and re-enrolling your employees.
Just a quick reminder that you must Auto-Enrol employees who are:
- Age between 22 and the state pension age (This will increase to 66 for both men and women in 2019)
- Earn more than 10k a year (2019/20)
- Ordinarily work in the UK
To discuss your individual requirements with an adviser, please call 01244 347 583 or email us at info@innesreid.co.uk. You can arrange an initial, no-obligation consultation at our expense.
