Under the workplace pension rules you may have to provide your workers with a pension by your staging date or duty date.
Before you set up a scheme you’ll need to work out which category of ‘worker’ your employees falls into. There are three categories and which one your workers fall into will depend on age and earnings.
|Earnings per annum|
(Tax year 2017/18)
|Aged between 16 - 21||Aged between 22 to State Pension Age||Aged between State Pension Age to 74|
|Less than or equal to £5,876||Entitled worker||Entitled worker||Entitled worker|
|Over £5,876 and up to £9,999||Non-eligible jobholder||Non-eligible jobholder||Non-eligible jobholder|
|£10,000 and above||Non-eligible jobholder||Eligible jobholder||Non-eligible jobholder|
If your employees fall into this category they should automatically be enrolled into a workplace pension scheme. You and your employee will need to make contributions to the scheme.
An employee can choose to opt out but you will have to re-enrol opted out employees every three years.
Non-eligible jobholders won’t automatically be enrolled into the scheme but if any of your employees falls into this category they can ask to join (opt in) and you will have to contribute.
You will have 6 weeks in which to enrol them into a workplace pension scheme.
Entitled workers won’t automatically be enrolled into a scheme but can ask to join a scheme and you’ll have to set one up, but you won’t have to pay into it.
There is no time limit for when this must be done by.
Detailed guidance for employers from The Pension Regulator