Are you prepared for the increase in the auto-enrolment pension contributions that come into force on 6 April 2019? The increases in April 2018 and 2019 were planned from the start of the Workplace Pension scheme, so it shouldn’t be a nasty surprise for business owners but it is your responsibility to manage the change through.

From April 2019, the minimum contribution from employees increases from 3% to 5%, whilst employers will also see their contributions go up from 2% to 3% 9 (see table).


Date Employer minimum contribution Employee minimum contribution Total minimum contribution
April 6 2018 – April 5 2019 2% 3% 5%
April 6 2019 onwards


3% 5% 8%


Although some employees may choose to opt out of their Workplace Pension due to the impact on their take-home pay, it is thought that the increase in tax-free personal allowances, also in April 2019, will offset the sting of higher employee pension contributions.

As an employer within the Workplace Pension scheme, you should check that your payroll software is compatible and ready for the increases, and also check your employee contracts and pension announcements to make sure the increases can take place smoothly.

If you pay in more than your legal minimum contribution but less than the total minimum contribution shown in the table, your employees need to pay in at least enough to make up the shortfall between these amounts.

There is plenty more information on The Pensions Regulator website, with letter templates for communicating with employees to a contributions calculator.

The team at CRM is happy to answer your queries about auto-enrolment workplace pensions and how to minimise the impact on your cash flow and profitability. Call CRM on 01865 379272 or visit our contact page.

Sage Accountant Partner Logoiris kashflowFreeagent