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Increase of automatic enrolment contributions

  1. Overview
  2. What do I need to do to set up these increases?
  3. Calculating contributions using different elements of staff pay

What do I need to do to set up these increases?

Follow the steps below to make sure the increases are implemented by 6 April 2019. You should allow plenty of time to put in place these increases.

1. Work out which increases apply to you.

  • If you are unsure you should check your scheme documents or speak to your pension scheme provider.

2. Work out which staff it applies to.

  • You need to make the increases in contributions for ALL staff who you had to put into a pension scheme and which you pay into, including any new staff you put into this scheme. The increases do not apply to staff who asked to be put into a scheme that you don’t have to pay into.

3. Make sure the way you calculate contributions and pay them to the pension scheme is ready to apply these increases.

  • If you use a payroll provider or payroll bureau you should speak to them to check everything is in place to process the increases
  • If you pay your staff yourself using payroll software, you must make sure it is set up to process the increases
  • If you are unsure what to do speak to the software provider
  • If you use your own process to pay your staff, you will need to ensure the increases are implemented
  • If you use HMRC basic payroll tools you will need to put in place a process to ensure the increases are implemented.

You should start this process early, as it may take some time.

You can use our online contributions calculator to help work out your costs for each member of staff.

Depending on what you have already agreed with your pension scheme, they may also be making the necessary changes to process the increases and may contact you nearer the time to tell you what is happening and what you need to do.

Telling your staff about the 2019 increases

You should let your staff know about the increases. We have an example letter template you can amend, which shows the 2019 increases.

Letter template for letting your staff know about the increase in contributions (DOC, 31.7kb, 1 page)

Depending on what you have agreed with your pension scheme provider, they may also write to your staff or have letters that you can use.

What if I haven’t had to put any staff into a pension scheme?

You still need to assess anyone who works for you each time you pay them and put them into a pension scheme if they meet the criteria for automatic enrolment. You must contribute at least the right minimum amount at the time and any further increases required. Find out about your ongoing duties.

What happens if these increases happen in the middle of a pay period?

You must make sure the increased amount of contribution is effective from 6 April 2019. You may want to speak to your payroll provider to help with this.

Where can I get support with these increases if I employ a personal care assistant?

You may wish to speak with whoever provides the direct payment funding for your personal care assistant.

What happens if I don’t make the increases from April 2019?

It is your legal duty to make sure the right minimum contributions are being paid from 6 April 2019. If you don’t do this it could result in a fine.

Do we have your correct contact details?

It is important we have your correct email address and contact details, so we can continue to send you information and guidance in the future.

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1. Overview
3. Calculating contributions using different elements of staff pay