NEST contribution rate increase
If you a member of the NEST pension scheme the contribution rates that both you and your employer pay into your pension will have changed in April 2018. The members rate has increased from 1% to 3%, the employers rate from 1% to 2%. This provides a total contribution increase of 2% to 5%.
Please note the increase is mandatory, by law a total minimum amount of contributions must be paid into the scheme, please see below for current rates and scheduled increases:
|Date||Employee Contribution||Employer Contribution||Total Contribution|
|1st March 2013||1%||1%||2%|
|1st April 2018||3%||2%||5%|
|1st April 2019||5%||3%||8%|
- This deduction will only be taken from qualifying earnings i.e. £5824.00pa – £43000.00pa.
- This will be taken directly from your qualifying pay.
- Tax relief – the government will also contribute through tax relief
If you want to stay in the pension scheme you don’t need to do anything; if you would like to opt out further information can be found on the NEST website at: www.nestpensions.org.uk