A tripling of contributions for auto-enrolment saving schemes
Millions of employees will see a change in April 2018 when their take-home pay is reduced by a tripling of their pension contributions. This increase may cause some employees to leave the workplace retirement schemes they are enrolled in.
The minimum employee contribution increased to 3% on April 6 2018 and will increase to 5% next year (April 2019). For the 2018-19 tax year, qualifying earnings will be between £6,032 and £46,350.
The employer’s contribution increased to 2% in April 2018, giving a combined minimum of 5% of earnings. Next year, April 2019, firms must contribute 3% giving a total contribution of 8%.
Fewer than one in ten workers have opted out since the rollout of the scheme began nearly six years ago.