On 6th April 2018 both employer and employee regulatory increases will be applied to all pension schemes for auto enrolment, with further increases to be made in April 2019.

It is the employers obligation to inform employees of this increase as they will be automatically applied by your pension provider.

The amount that you and your staff pay into your pension scheme will vary depending on the type of scheme you have chosen and the rules of that scheme, for example if you have opted for a basic salary scheme the contributions differ.

Most employers use the schemes that currently require a total minimum of 2% contribution to be paid. The scheme contributions are calculated on a range of qualifying earnings between the proposed lower limit of £6,032 and upper limit of £46,350 (2018/19 tax year).



Employer minimum contribution  Employee contribution Total minimum contribution
Up to 5 April 2018 1% 1% 2%
6 April 2018 2% 3% 5%
6 April 2019 3% 5% 8%


You do not need to take any further action if you don’t have any staff in a pension scheme for automatic enrolment or you are already paying above the increased minimum amounts.

If any of your employees do not want to increase their contribution they must opt out of the scheme by April 5, 2018. As an employer though you cannot be seen to be offering advice on this, you need to remain impartial.

Clarke Nicklin’s IFAs have achieved the ‘Certificate in Pensions Automatic Enrolment’ designed to specifically meet the needs of those advising on, or implementing the requirements of Auto Enrolment. We will always assess each clients’ circumstances in detail to arrive at the best scheme for both employers and staff on an ongoing basis as circumstances and objectives of the company evolve.

If you wish to discuss this further with one of our advisors please do not hesitate to call Kath Arnold on 0161 495 4700 or email kathrynarnold@cnfp.co.uk who will make an appointment on their behalf.