top of page

Pension Contribution Increases 2019

Are you ready for the next pension contribution increases?

Take a look at the changes coming into effect & what this means for employers & employees long term…

From 6th April 2019, the minimum contributions employers and their employees will have to make towards their automatic enrolment workplace pension scheme will increase. Rising from 3 to 5%, anyone enrolled into a workplace pension scheme must pay at least 5 percent of their salary into their pension pot. The increase is being introduced by the government to ensure that today’s society can build up sufficient savings to provide them with an income in retirement.

Approximately 73% of employees in the UK are enrolled in a workplace pension scheme, up from less than 47% in 2012, due to the government's auto enrolment scheme introduced in October of that year. Since then over 10 million workers have been enrolled into workplace pension schemes automatically, paying a portion of their salary into their pension fund each month.

Many who auto enrolled in a pension scheme did so on the minimum contribution level of 3%. With these new changes coming into effect at the start of the new financial year, some are concerned with the effect this will have on their take home pay at the end of each working month.

However, these short term changes have a long term, positive impact for our futures. As well as employee contributions increasing, minimum employer contributions are also on the rise, from 2% to 3% in April. Meaning the total contributions will increase to 8%.

It is the employer’s responsibility under the Pensions Act 2008, to implement the increases. This applies whether you set up a pension scheme for automatic enrolment or you decided to use an existing scheme.


Part of the benefit of being a client with Riada is that we provide a personalised account management solution to include payroll, pension contributions, employers national insurance and holiday pay. We have a wealth of knowledge to share with you, from industry advice, recruitment 'know how' and passion to deliver on your expectations.

Get in touch today by giving us a call on 028 7032 6600 or send us an email to to find out more.

49 views0 comments


bottom of page