Automatic enrollment means most UK employers will be obliged to put in place a qualifying workplace pension scheme and automatically enroll their qualifying workers. Employers then have to make contributions to their workers’ pensions every pay period. Under a law introduced in 2012, all employers must eventually offer a workplace pension scheme and automatically enroll eligible workers in it. Workers fit into one of three groups: eligible, entitled and non-eligible. A worker assessment will help you identify which group each of your employees fits into. Eligible workers must be automatically enrolled and you must pay minimum contributions. They are those who:
- Aren’t already in a qualifying pension scheme at work.
- Are aged between 22 and the state pension age (the earliest age they can claim their state pension).
- Work in the UK.
- Earn at least £10,000 in a year (this figure is reviewed by the government each tax year).
Non-eligible workers can ask to be enrolled into your scheme and if they do, you must pay minimum contributions. These are UK workers who are either:
- Aged between 16 and 22 or between state pension age and 74 and earn more than £10,000 in a year, or
- Are aged between 16 and 74 and earn at least £5,824 but less than £10,000.
Entitled workers can also ask to join, although you don’t have to pay contributions for this group. Entitled workers are those aged at least 16 but under 75 who earn less than £5,824.
We will help you manage all your auto enrollment so that you don’t have to go through the trouble of dealing with it. We will ensure that all your liability is taken care of in a timely fashion without much effort on your part.