Automatic Pension Enrolment

Automatic Pension Enrolment

Until now, employees have been able to decide whether or not they want to join their employer’s pension scheme. By 2018, all employers will have automatically enrolled their eligible workers into a workplace pension scheme unless the employee decides that they want to opt out.

Whether an individual works full or part time, the employer will enrol the eligible workers into a workplace pension scheme.

Eligibility criteria:

  • Employee is not already in a suitable workplace pension scheme
  • Employee is at least 22 years old, but under state pension age
  • Earn more than £10,000 a year (tax year 2015/16)
  • Work in the UK

The total minimum contribution is currently set at 2% of an eligible employees earnings (0.8% from the employee, 1% from the employer, and 0.2% as tax relief).

From October 2017, the above will increase to:

October 2017 to September 2018: 5% of an employees earnings this is made up of 2.4% from the employee, 2% from the employer, and 0.6% as tax relief.

From October 2018 onwards: 8% of an employees earnings which is made up by 4% from the employee, 3% from the employer, and 1% as tax relief.

 

There is a lot more to Auto Enrolment. Need further information?








Where did you hear about us?


captcha