Pension Contributions For Workers

From the 6th April all auto enrollment pension contributions increase. The total cost now is not insignificant but the good news is – these are the full rates and there are no more planned.

So, from Friday 12th April onwards, workers must contribute 5% of their wages and employers must contribute 3%. A total of 8%. The total increase to employers since the auto enrollment scheme started is therefore 3% and all but wipes out the benefit of the employers National Insurance Allowance of £3000 per annum.

Add to this the increase in the minimum wage from 5th April (£8.21 for over 25) and there begins to be a question about employing a new member of staff or not.

At the margins, this may mean decisions to employ are put on hold.