Over time, auto enrolment minimum contributions will increase. The government has set a timetable for these increases and originally the first was scheduled for 1st October 2017. But in 2015, the government announced that this timetable has been pushed back six months and the first increase will now take place on 6 April 2018 with the second on 6 April 2019.
The auto enrolment minimum is initially 2% of which at least 1% must be paid by the employer. Over time this increases to a total of 8% of which at least 3% must be paid by the employer.
These contributions are set on earnings over £113 per week up to an upper limit of £866 per week. You have the flexibility to pay contributions at a rate that suits your business objectives, subject to these being at least equal to the minimum requirements above.
|Date||Employer minimum contribution||Total minimum contribution|
|Before April 5 2018||1%||2% (including 1% staff contribution)|
|April 6 2018 – April 5 2019||2%||5% (including 3% staff contribution)|
|April 6 2019 onwards||3%||8% (including 5% staff contribution)|