The auto-enolment scheme has already gained more than 8.5 million staff enrolments as businesses across the UK are making perparations to increase their minimum workplace pension contributions.
The increase in auto-enrolment minimum contributions has been pushed back by six months from its orginal due date of October 2017. The first increase will take place on 6th of April 2018 and as a result the total contributions will increase from 2% of qualifying earnings to 5% of qualifying earnings, with employers contributing 2%. The next increase will take place on 6th of April 2019 and the total contribution will rise to 8% of qualify earnings with employers contributing 3%.
The Government plan to lower the starting age for auto-enrolment on workplace pension savings schemes from 22 to 18 years will help introduce more than 900,000 young people into the workplace pension system, helping these young workers to save an additional £800 million.
These changes will be a good news for many workers, however many employers may find these as a burden on their limited time and limted resources as these changes will need to be implemented into their existing payroll system once introduced.