Automatic Enrolment

Auto Enrolment is all about pensions – compulsory workplace pensions, with employers enrolling all eligible staff into a qualifying pension scheme. By the end of 2018, a staggering 1.3 million companies will have a legal obligation to provide a pension plan for all employees.

To help you through this process, we’ve put together a brief guide as to what Automatic Enrolment is, and what you will need to do as an employer.

What is automatic enrolment?

Automatic Enrolment will place new responsibility on employers to automatically enrol its staff into a work based pension scheme, if they are:

  • Aged between 22 and the State Pension age.
  • Earn over £10,000 a year.
  • Work in the UK.

What will you need to do next:

  • Assess the type of workers you have.
  • Outline what Automatic Enrolment into a workplace pension will mean for your workers.
  • Then auto enrol employees who meet the age and earnings criteria into the pension scheme (mentioned above).
  • Register with The Pensions Regulator and keep all records.
  • Pay and deduct contributions for your eligible employees.
  • Oversee the enrolment, or de-enrolment, of employees who opt-in or opt-out.

What are the costs?

Employee

Total cost

Up to 5th April 2018

2% (including a 1% employee contribution)

From 6th April 2018 – 5th April 2019

5% (including a 3% employee contribution)

From 6th April 2019 onwards

8% (including a 5% employee contribution)

You can find much more information and advice on The Pension Regulators website

If we can provide you with any assistance, please do contact one of our partners on 020 8861 7575.

If you prefer, you can complete the form on the right, and we will call you straight back (within 24 hours) and answer any questions you may have, so that we can make sure you comply with the various Automatic Enrolment requirements.

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