Over a quarter of businesses unprepared for rising workplace pension contributions
Over a quarter (28%) of senior business decision makers are unaware of increases to minimum workplace pension contributions from 6th April according to a survey* of 691 senior decision makers by NOW: Pensions, the workplace pension provider.
On 6 April, contributions will rise from 2% of qualifying earnings – with employers responsible for at least 1% – to 5%, with employers responsible for at least 2%.
In April 2019, contributions rise to 8% of qualifying earnings with employers responsible for at least 3%. The survey found that nearly half (42%) of senior business decision makers are unaware of this change.
Awareness amongst small businesses is better with four out of five (81%) aware of the upcoming changes in April 2018, in comparison with just a third (66%) of large businesses.
Amongst those senior business decision makers that know about the upcoming changes, 92% are also aware that their business could be fined if they don’t act.
Commenting on the findings, Adrian Boulding Director of Policy at NOW: Pensions said: “Although these changes have been planned for a number of years, it seems that some employers still risk being caught out. The good news is, it’s not too late to take action and there’s plenty of support available for those that may be unsure what to do.”
NOW: Pensions has developed a toolkit to help employers communicate these upcoming changes to their staff which can be downloaded here.