Auto enrolment places new duties on employers to automatically enrol ‘workers’ into a work based pension scheme. Employers are required to automatically enrol all ‘eligible jobholders’ into a qualifying pension scheme and pay pension contributions on their behalf.
Phasing in of contributions
|Employer minimum contribution||Total minimum contribution|
|Employer’s staging date to 5 April 2018||1%||2%|
|6 April 2018 to 5 April 2019||2%||5%|
|6 April 2019 onwards||3%||8%|
Where the employer does not make the total minimum contribution the employee is obliged to pay the balance
|Automatic enrolment earnings trigger||£10,000|
|Qualifying earnings band – lower limit||£6,032|
|Qualifying earnings band – upper limit||£46,350|
This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.