Cost to Employers & Staff

The investments into your existing (qualifying) pension scheme, or new separate auto-enrolment pension scheme, will be governed by a minimum contribution rate.

This is to be known as the Full Qualifying Rate (FQR).  This “FQR” is set at 8% of the Band Earnings between £5,876 and £45,000.  The Employer must pay at least 3%, the balance being paid by the Worker and HMRC tax relief.

See the table below for a summary table of contribution rates.

The FQR of minimum contributions will be reached in stages, the dates for compliance also being shown below in the table.

Auto-enrolment contributions:

To April 2018 To April 2019 From April 2019
Employer 1% 2% 3%
Employee 1% 3% 5%
Totals 2% 5% 8%