Workplace pension contributions to rise

From April 2019, the amount of money people pay into workplace pensions will rise as minimum contributions from employees are increased from 3% to 5% under auto-enrolment rules. Employers will also see their contributions go up from 2% to 3%.

To put it into perspective, someone earning around £27,000 and paying in the auto-enrolment minimum will see their personal contribution rise from about £500 this year to more than £850 in 2019/20.

The new rates are as follows:

Year Employer minimum contribution Employee minimum contribution Total minimum contribution
April 2018 (current rate) 2% 3% 5%
April 2019 3% 5% 8%


All employers with staff in a pension scheme for automatic enrolment must take action to make sure at least the minimum amounts are being paid into their pension scheme. This applies to you whether you set up a pension scheme for automatic enrolment or you decided to use an existing scheme.

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

By law a total minimum amount of contributions must be paid into the scheme. If you are already using Leonherman for your payroll the increases will happen automatically.

Get in touch if you are unsure of what to do next or take a look at The Pensions Regulator website.