Workplace Pension Contribution Increases
At Harvey Telford and Bates, we provide a hands-on approach and guarantee specialist advice and support to all of our clients on the increase of pension contributions.
The workplace pension contribution increase applies to all employers with staff in a pension scheme for automatic enrolment.
Currently, the employer minimum contribution is 2% with a staff contribution of 3%, however, from the 6th April 2019, employers will have to pay a minimum contribution of 3% with a staff contribution of 5%.
TPR is now starting to write to all employers to remind them of their duties. Their website provides further information on the increases and a link to a letter template advising employees of the increase.
TPR are also advising employers to check with their payroll software provider and pension provider to ensure plans are in place ahead of the 6th April 2019.
The calculation for this new type of pension scheme is based on a specific range of earnings. For the 2018/19 tax year, this range is between £6,032 and £46,350 a year (£503 and £3,638 a month, or £116 and £892 a week). These figures are renewed by the government yearly.
Please be aware to include the following when you are calculating contributions for this type of scheme:
- Salary
- Wages
- Commission
- Bonuses
- Overtime
- Statutory sick pay
- Statutory maternity pay
- Ordinary or additional statutory paternity pay
- Statutory adoption pay
Director at Harvey Telford and Bates, Danielle Harvey stated: “As of April this year, the workplace pensions contributions will be increasing for both employers and staff. In order to make this process as quick and smooth as possible, we advise all businesses to either get in touch with us or TPR, for any help with payroll or pensions auto enrolment compliance.”
Get in touch with a member of our team today! Call us on 01743 462604 or email us at [email protected]
