We hope all going well with your Gingham Kids Nanny.
Good news – by law, the minimum amount that must be paid into an employee’s pension will go up again in April 2019. So employers need to make sure they pay the correct amounts into their employees’ pension to remain compliant.
What are the minimum pension contributions and how do they affect you?
When employees are auto-enrolled into a pension (Gingham Kids Payroll Service uses NEST), by law there are set minimum amounts that need to be paid into their pension savings.
The minimum amount that should be paid into your pension rises from 6 April 2019 to a total minimum amount of 8% of your qualifying earnings. At least 3% must come from employers whilst employees make up the difference. These percentages can vary if an employer calculates contributions using different elements of pay.
This means the amount the employer pays into a pension pot just got bigger. And when the employee makes up the difference and increases the amount they pay, the amount of money the government puts in (known as tax relief) goes up too.
This is great news as it means you will be getting even more out of their workplace pension.
Have any questions? Contact our Payroll Manager Gillian Barrett on firstname.lastname@example.org