Employers have a duty to auto enrol certain workers into a qualifying workplace pension scheme and pay minimum level contributions into it.
The minimum required levels of contributions is being phased in over a period of time.
Regulations come into force on 1 October postponing the increases by six months so that they will be aligned with the beginning of the relevant tax years.
The minimum amount employers currently have to contribute is 1%. This was to rise in October 2017 and then again in October 2018. However, those dates have now been amended meaning that the minimum employer contributions will be as follows:
Until 5 April 2018 1%
From 6 April 2018 2%
From 6 April 2019 3%
Reference: The Employers’ Duties (Implementation) (Amendment) Regulations 2016
Topics: Auto Enrolment, Workplace Pensions