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Phasing contribution increases to workplace pension schemes

As you know, by law, all auto enrolment workplace pension schemes must reach a minimum contribution level.

Contribution basis breakdown for 2018, 2019 and onwards

Many employers have chosen the statutory phasing timeline which means the first increase happened in April 2018, with a further planned increase as shown in the table (click to enlarge).

Other employers have chosen a customised approach, following a different timeline and in some cases, different contribution increases too.


As you’re aware, your client could be fined if contributions aren’t increased in line with the legislation.  

We’re communicating with employers as they approach the contribution increase dates agreed for their schemes.   

We’re directing employers to our employer website where we’ve provided additional information to support them, along with the workplace marketing material they'll need to raise awareness among their employees.

As you know, The Pensions Regulator's rules state very clearly that employers must not induce members to pay contributions below the minimum. It's important that employees make their own decisions about the level of contributions they want to make.

We've included information to help employers deal with members who don't want to increase their contributions should they want to allow this in their scheme. We've also directed them to The Pensions Regulator detailed guidance for employers.

We’re writing to members as their increase approaches. We also highlight the benefits of saving for their retirement through their employer’s pension scheme. Here are examples of the letters.

We’ve also made posters, postcards and an article template available to employers to help raise awareness of the change.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.