We all know that pension contribution rates will be going up. Well, it is still a while away but just so you can’t say I didn’t warn you, the new rates are shown here.
|Key dates||Minimum employee||Minimum employer|
|Current to 5 April 2018||1%||1%|
|6 April 2018 to 5 April 2019||3%||2%|
|6 April 2019 onwards||5%||3%|
Remember that these rates apply if you are using qualifying earnings or tier 2 for your definition of pensionable pay, which I am glad to say, most of you are.
The earnings trigger of £10,000 per annum, which qualifies 22 year olds and over for auto-enrolment, has not been increased this year. It has remained unchanged for three years now and I do not expect it to be increased.
Despite many of your understandable worst fears, there has still been no indication that the percentages will be increased after April 2019. Well all I can say is watch this space.