You need to pay the employer minimum contributions per the table below of your employee’s earnings that fall between £5,824 a year and £43,000 a year (e.g. 2% from 6th April 2018 to 5th April 2019).
These payments are known as ‘contributions’ and are set by the government each year.
** The minimum contributions will be introduced in three stages. You have to make the“Employer minimum contribution’ shown below. Then the total contribution is reached by adding the employee’s contribution (deducted from their earnings) and tax relief from the Government. However, you can choose to pay more if you want to.
| Proposed dates|
(subject to Parliament
| Employee Contribution|| Tax Relief on employee contribution|| Total minimum contributions|
| Until 5th April 2018|| 1%|| 0.8%|| 0.2%|| 2%|
| 6th April 2018 to|
5th April 2019
| 2%|| 2.4%|| 0.6%|| 5%|
| 6th April 2019 onwards|| 3%|| 4%|| 1%|| 8%|
You will have to pay a regular contribution for every eligible member of staff. There may also be other costs to consider, such as getting the right software, and seeking professional advice on how to implement the scheme.
Click here to get a rough calculation of how much you�ll have to contribute towards pensions.
Our service costs £300+VAT for the set up of the scheme and £25 (for up to 5 employees) monthly, thereafter £5 per extra employee for the administration of the pension scheme including reporting the deductions to the pension provider as well as running the payroll.