Employers and eligible staff
Employers have to provide a workplace pension scheme for eligible staff as soon as your first member of staff starts working for you (known as your âduties start dateâ).
Check youâre an employer
Youâre usually an employer if you deduct tax and National Insurance contributions from an employeeâs wages.
Check youâre an employer if youâre not sure what your pension responsibilities are, for example you employ a carer or someone to work in your home.
Who you must enrol
You must enrol and make an employerâs contribution for all staff who:
- are aged between 22 and the State Pension age
- earn at least ÂŁ10,000 a year
- normally work in the UK (this includes people who are based in the UK but travel abroad for work)
If staff become eligible because of a change in their age or earnings, you must put them into your pension scheme and write to them within 6 weeks of the day they meet the criteria.
If youâre not sure what the state pension age is you can use the State Pension age calculator to find out.
You do not have to enrol an employee if they give you proof of their lifetime allowance protection.
How to set up a workplace pension scheme
You must set up a workplace pension scheme for eligible staff if you do not already offer one.
Use The Pensions Regulatorâs tool for employers to find out what you need to do and when you need to do it.
If you already have a workplace pension scheme that youâd like to use for automatic enrolment, you must ask the provider if it meets the rules.
How much you must pay
You must pay at least 3% of your employeeâs âqualifying earningsâ into your staffâs pension scheme.
Check the pension scheme youâre using to find out what counts as âqualifying earningsâ.
Under most schemes, itâs the employeeâs total earnings between ÂŁ6,240 and ÂŁ50,270 a year before tax. Total earnings include:
- salary or wages
- bonuses and commission
- overtime
- statutory sick pay
- statutory maternity, paternity or adoption pay
Paying contributions
You must deduct contributions from your staffâs pay each month. Youâll need to pay these into your staffâs pension scheme by the 22nd day (19th if you pay by cheque) of the next month.
You must pay your contributions for each employee by the date youâve agreed with your provider every time you run payroll. You must backdate any missed payments.
You may be fined if you pay late or do not pay the minimum contribution for each member of staff.
