What's auto-enrolment? | Help and support

How much do I need to pay into my employees’ pension pots?

Niki Smith — Wed, 11 May 2016 08:55:36 +0000

If the qualifying earnings basis is being used, the minimum contribution is 8% with at least 3% from the employer on qualifying earnings falling between upper and lower earnings limits of £6,240 and £50,270 a year. These payments are known as ‘contributions’ and are set by the government each year.

Minimum pension contributions have risen in stages starting from 6 April 2018. From 6 April 2019 minimum pension contributions have increased to 8% of employees’ qualifying earnings (3% employer, 4% employee and 1% tax relief; or 3% employee and 5% employer if salary sacrifice is offered).

What are the basic things I need to do to comply with auto-enrolment?

editorial — Sun, 29 Mar 2015 12:56:39 +0000

The auto-enrolment obligations are set out in legislation and The Pensions Regulator is responsible for ensuring compliance with the auto-enrolment legislation. So, it’s a good idea to make yourself aware of your basic responsibilities.

You must:

Put qualifying employees into a pension scheme and pay into their pension pots
Provide a declaration of compliance to the Pensions Regulator for the pension scheme every 3 years
Keep details of all opt outs for 4 years
Keep specific records for each employee for 6 years.

What are the upper/lower earnings limits?

Karishma Mulji — Tue, 05 May 2015 15:15:31 +0000

Currently, the lower earnings threshold is £6,240. The upper earnings threshold is £50,270.