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When will auto enrolment minimum contributions increase?

Under auto enrolment legislation, minimum pension contributions are required to increase over time. This happens on set dates. Originally, auto enrolment minimum contributions were due to rise in October 2017 and again in October 2018.

These increases were pushed back by six months by the government and the increases will now happen on 6 April 2018 to a total of 5% of qualifying earnings of which 2% must be paid by the employer and 6 April 2019 to a total of 8% of qualifying earnings of which 3% must be paid by the employer.

Date Employer minimum contribution Employee minimum contribution Total minimum contribution
Before April 5 2018 1% 1% 2%
April 6 2018 – April 5 2019 2% 3% 5%
April 6 2019 onwards 3% 5% 8%

For more information

http://www.nowpensions.com/wp-content/uploads/2016/01/An-introduction-to-auto-enrolment-contributions.pdf

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