Minimum Contribution Increases (Phasing)

By law, minimum auto enrolment pension contributions are due to increase over time.

Minimum Contribution Increases (Phasing)

By law, minimum auto enrolment pension contributions are due to increase over time. This is known as phasing. The first increase took place last April at the start of the 2018/19 tax year. The second increase will take place on 6th April 2019.

 

On the 6th April 2018, the total minimum contribution increased from 2% to 5%. Employers are now required to contribute a minimum of 2%. Employees need to contribute the remaining 3%. Minimum contributions will undergo further increases on 6th April 2019, with the total minimum contribution rate increasing to 8%, representing a 3% employer and 5% employee contribution.

BrightPay 2018/19 and BrightPay 2019/20 can seamlessly handle the respective increases, with various options depending on the different scenarios.

Watch our video to see how the above scenarios worked in BrightPay 2018/19: 

 

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