Pension contributions are usually expressed as a fixed sum or a percentage of earnings. If they’re expressed as a percentage you will need to confirm salaries with your pension provider / trustees regularly as necessary from time to time.
You also need to decide what elements of staff pay are used to calculate pension contributions, subject to any overriding legislative requirements, such as in relation to automatic enrolment. You may decide that only basic pay is pensionable but not bonus or overtime payments. Let your pension scheme know what you decide.
How much you must pay
The amount you must contribute to the pension scheme is determined by the scheme’s rules. However, if you’re using the scheme for automatic enrolment there are minimum contributions you must pay.
| Date | Employer minimum contribution | Total minimum contribution |
|---|---|---|
| Employer's staging date to 30 September 2017 | 1% | 2% |
| 1 October 2017 to 30 September 2018 | 2% | 5% |
| 1 October 2018 onwards | 3% | 8% |
Click here for more information about :