Workplace Pension Auto-enrolment Contribution Increases & Temporary Staff

The Pensions Regulator (TPR) is reminding UK employers that they need to comply with their auto-enrolment duties…

Are you ready to increase contributions?

TPR are reminding employers that they need to be ready to deal with the increased auto-enrolment pension contributions which apply from April 2018. Employers and their employees need to be aware of how the changes will affect them, including checking that the employer’s payroll software is compatible.

Guidance on this issue is included on TPR website. From 6 April 2018 - and if employers have decided to use ‘phasing’ - the minimum contributions employers and staff pay into their automatic enrolment pension goes up. This increase has been planned since automatic enrolment started. Further increases in rates are scheduled for April 2019.

Automatic enrolment still applies to temporary staff this Christmas

With the festive season fast approaching, employers may be planning to take on temporary staff to help their business survive the rush. Automatic enrolment applies to these employees in the same way as permanent employees, even if they will only be working for a short time.

Employers will still need to assess temporary staff and auto-enrol any eligible employees into a qualifying pension scheme. Once enrolled, both the employer and employee must make pension contributions.

It is possible to apply postponement to temporary employees, which has the effect of delaying some of the auto-enrolment duties, but TPR are warning this must be dealt with correctly.

Updated December 2017. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For more information, please contact:

Tim Atkins 
Director, Employee Benefits & Financial Services
F&L Financial Services Limited: authorised and regulated by the Financial Conduct Authority
+44 (0)20 7430 5898 
tatkins@fitzandlaw.com

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