Staff pension enrolment

Last Updated On October 13, 2018
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Staff pension enrolment

 

Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension scheme and contribute towards it. This is called ‘automatic enrolment’. If you employ at least one person then you are an employer and you have certain legal duties.
You must automatically enrol workers into a workplace pension scheme if they:
  • are aged between 22 and the State Pension age
  • earn at least £10,000 a year
  • normally work in the UK (this includes people who are based in the UK but travel abroad for work)
Use this handy tool by the Pensions Regulator which helps you find out what you need to do and by when.
Employer’s contribution:
  • A minimum of 2% of the employee’s “qualifying earnings”
  • rising to 3% in 2019
  • Qualifying earnings include salary, wages, bonus, commission, etc.. Check the pension scheme you’re using to find out what counts as ‘qualifying earnings
Paying contributions:
  • deduct contributions from your staff’s pay each month
  • pay contributions into your staff pension scheme by the 22nd day of the next month
  • pay your contributions for each employee by the date you’ve agreed with your provider.
Note: You may be fined by The Pensions Regulator if you pay late or don’t pay the minimum contribution for each member of staff.
Further information and help from The Pensions Regulator

 

Disclaimer: this article is only intended as an overview of the legislation. You must always check directly with HMRC, ACAS or your own legal consultant for further information.