Workplace pension schemes will need to be reviewed in April to ensure that they continue to comply

By law, the total minimum contribution percentage for auto enrolment pension schemes will soon increase.

This increase will happen in two stages, known as “contribution phasing”, with the first increase on the 6th April 2018.

What are the contribution increases?

The table below summarises the changes:

Pension contribution table

When must you increase your minimum contributions?

The first increase in minimum contributions (to a minimum 2% employer contribution and total 5% contribution) will become law on 6th April 2018 and will apply to payrolls run after this date.

What do you need to do?

  • If you are an a4c client then you don’t need to do anything as we will automatically update the payroll for you so that the employee and employer contributions are adjusted, to ensure that your pension scheme remains compliant with the law at all times.
  • If you run your own payroll, or use a payroll outsourcing business then you will need to ensure these contribution changes have been applied.

Is there anything else you need to do?

You may wish to inform your employees about these changes. We would recommend doing so in writing so that you have a communication audit trail.

Remember that you should not encourage employees to opt out as this is unlawful and doing so may make you vulnerable to a fine from the Pensions Regulator.

Get in touch

As always, if you have any questions about your pension scheme, the details of this article or any other aspect of your business then please don’t hesitate to give us a call on

01737 652 852