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|