Current pensions legislation means that every employer will need to enrol their UK based employees into a pension scheme if certain criteria are met.
Guidance regarding auto enrolment:
- Staff aged 22 to state pension age with monthly gross earnings of £833 and above must be automatically enrolled and the company must contribute.
- Staff aged 16 to 74 with monthly gross earnings over £486 and up to £833 have the right to opt in – if staff opt in the company must contribute.
- Staff aged 16 to 74 with monthly gross earnings of £486 and below have the right to join a pension scheme – if staff ask to join, the company must provide a pension scheme but does not have to contribute.
Guidance regarding minimum regular contributions:
- From the employer’s staging date to 30 September 2017 – employer contribution 1%, employee contribution 1%.
- From 1 October 2017 to 30 September 2018 – employer contribution 2%, employee contribution 3%.
- From 1 October 2018 – employer contribution 3%, employee contribution 5%.
It may be that your company is not considered an employer for the purposes of automatic enrolment if, for instance, there is only one director and no other staff working for the company.
For more detailed information and guidance we would recommend visiting the Pensions Regulator website.Share this: