Workplace pension contributions are set to increase starting from 6 April 2019. Minimum contributions for employees will increase from 3% to 5% under the new rules, while employers will see their contributions go up from 2% to 3%.
An employee earning approximately £27,000 would normally contribute about £500 into their pension, but that amount would increase to £850 after the new rules. Eligible employees are automatically enrolled into their workplace scheme but may choose to opt out and will get back any money already paid in. However, opting out would mean missing out on tax benefits and employer contributions.