Minimum contribution 2019

sofsofsof · 14 December 2018 at 9:40PM

I pay 4% my employer pays 4% as it stands. Come April 2019 they will up minimum to 8% in the table i have seen it mentions 5% from me and 3% from them as a minimum. Without sound completely stupid (and yes im probably about to) will it not matter that i pay 4% and them 4% as combined is minimum 8% required?
Or will it be me now contributing 5% as stated is minimum contribution i do and them 5%?

Sorry to sound so stupid please can someone clarify

greatkingrat · 14 December 2018 at 9:54PM

The new minimum rates are 3% employer, and 8% total. So if your employer only pays the 3%, you would have to pay 5%, but as they are paying more than the minimum you can keep your contributions at 4% if you wish.

It is possible an employer could be contributing 8% on their own, in which case the employee wouldn't have to make any contributions at all.

Of course, it is probably a good idea to increase your contributions above the minimum anyway if you can afford it.

Albermarle · 15 December 2018 at 12:59PM

Yes 3 % employer and 5% employee will be the legal minimum from April 6th 2019 for most schemes .
It will be 4% and 5% for some employers , where bonuses and overtime are not included in the 'qualifying earnings '
However an employer and/or employee can pay more if they like . A friend's company has agreed to match the employee's 5% for example to give 10% in total.

Minimum contribution 2019

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