Workplace pension minimum contribution increases

If you have a workplace pension then you may receive communication from your pension provider informing you of the upcoming changes to minimum contribution rates, effective from April 2019. Currently (2018-19) the minimum contributions are 5% (with the employer typically contributing 2% and the employee 3%). From April 2019 the minimum contribution will be increased to 8% (typically 3% employer, 5% employee).

As part of the procedure for creating a new Payroll Manager data file for 2019-20 (which you will be able to do in March 2019), Payroll Manager will offer to update these minimums automatically. In the meantime, if you wish to communicate details of the upcoming changes to your employees then you can do so by clicking ‘Pensions‘ then ‘Letters‘ then ‘Rate Increase 2019‘ from the main menu in Payroll Manager.