Your browser does not support JavaScript

Pension contribution increase letter

£ 9
Get much more with our
Pay and benefits template toolkit:

Our Pension Contribution Increase Letter template notifies employees about upcoming pension contribution adjustments, ensuring transparency and compliance with regulations.

Reading time
How long to understand and implement this letter?
5 mins
Word count
How many words in this letter?
We also have budget-friendly bundles featuring this template:

What is a Pension contribution increase letter?

An Employee Pension Contribution Increase Letter is a written communication from an employer to an employee informing them that their pension contributions will be increasing.

Employers may offer pension plans as part of their employee benefits package, and both the employer and the employee typically contribute a percentage of the employee's salary to the pension plan. Over time, the employer or the plan provider may adjust the contribution rates to ensure that the plan remains sustainable and adequately funded.

An Employee Pension Contribution Increase Letter typically explains the reason for the contribution increase and provides details on the new contribution rate and the effective date of the increase. The letter may also include information on any impact the increase may have on the employee's take-home pay and any options the employee may have to adjust their contributions or investment choices.

It's important for employers to communicate any changes to pension contributions clearly and well in advance to give employees time to plan and adjust their finances accordingly. Employers may also want to provide education and resources to help employees understand the importance of saving for retirement and the potential benefits of increasing their pension contributions.

Issued by who, to whom
Who should issue this letter, and to whom?
The Employer (you) to the Employee
Applicable legal jurisdiction
In which jurisdiction can this letter be used?
Great Britain & NI (United Kingdom)

Pension contribution increase [Delete this line]

[Company name]

[Sender address]



[Recipient name]

[Recipient address]


Dear [Recipient first name],

The amount you're paying into your workplace pension is going up

To help you save for later life, we've set up a workplace pension scheme for you with [provider name] (it's a legal requirement). It's your pension pot and your money, it'll belong to you even if you decide to change employer.

[The law requires both employers and employees to gradually increase the amounts paid into your pension pot. It's been introduced in stages to help you better prepare for the future. By law, ]the amount [you|we] will pay into your pension pot is going up by [percentage]%.

Here's how the levels of contributions look:

[Show/describe the current levels, and any changes to contribution levels here]

The good news for you is that there will be more money in your pension pot as a result. However, it's important you know that if you decide to stop paying in to your pension pot, we will stop paying in too.

[Your pension contribution is taken from your gross monthly salary so your tax is only deducted after you have made your contribution. This means that although your pension contribution will increase, you will pay tax on less of your salary.]

When will this happen?

You'll notice a change in your contribution amounts in your first payslip after [date].

So, what happens next?

You don't need to do anything. We'll automatically adjust the amounts you pay in to your pension pot. Your contributions will come out of your pay, as normal.

Remember; the money you put in to your pension pot will be topped up by us - think of it as extra 'free' money. A great way to add to your retirement savings!

Can I pay even more into my pension pot?

Yes. You can do this at any time - just let us know.

Yours [faithfully | sincerely],



[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]

This is a preview. Access to the remainder requires a purchase.

£ 9

Get much more with our
Pay and benefits template toolkit:
Pension contribution increase letter
pension contribution increase letter