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Auto-enrolment changes to timing of contribution rises
There is a big campaign in the media at the moment to alert businesses and employees to the fact that employers are required to offer pensions to eligible employees. Many employers have their schemes set up and running, with the remainder due to follow shortly. If, as an employer, you have not found out your staging date yet, go to to get the relevant information. It may take several months to put in place, so you are urged to take action now even if your staging date is not until 2017. The Regulator is already fining those who do not comply with the regulations, so take advice now and make sure you get ready in good time.

However, in the Chancellor’s autumn statement speech at the end of 2015, he revealed that planned rises in minimum contributions for employers will be delayed by six months (subject to Parliamentary approval.)

George Osborne said that the previous date for minimum employer contributions to rise to 2 per cent (bringing employees’ total contribution to 5 per cent) will now be pushed back from October 2017 to April 2018. He also announced the further rise to 3 per cent employer contribution planned for October 2018 (to bring total contributions to 8 per cent) will now not happen until April 2019.

Apparently this change to increasing contributions each April has been proposed to make it easier for employers to administer because they will now begin at the start of a new financial year.
Posted on 19 Nov 2016

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