Workplace Pension Contribution Increase – From April 2018
- The minimum your employer pays: 2%
- You pay: 3%
- Total minimum contribution: 5%
If you’ve been automatically enrolled
You and your employer must pay a percentage of your earnings into your workplace pension scheme.
How much you pay and what counts as earnings depend on the pension scheme your employer has chosen. Ask your employer about your pension scheme rules.
In most automatic enrolment schemes, you’ll make contributions based on your total earnings between £5,876 and £45,000 a year before tax. Your total earnings include:
- salary or wages
- bonuses and commission
- statutory sick pay
- statutory maternity, paternity or adoption pay
These amounts could be higher for you or your employer because of your pension scheme rules.
In some schemes, your employer has the option to pay in more than the legal minimum. In these schemes, you can pay in less as long as your employer puts in enough to meet the total minimum contribution.
If you’ve voluntarily enrolled in a workplace pension
Your employer must contribute the minimum amount if you earn more than:
- £490 per month
- £113 per week
- £452 per 4 weeks
They don’t have to contribute anything if you earn less than this.