DUA

Started employing staff? Don’t forget the workplace pension…

Pension auto enrolment was set up in 2012. All employers must provide a workplace pension scheme. This is called ‘automatic enrolment’. UK employers are legally required to set up a workplace pension scheme into which they must enrol their employees and contribute to their savings. if you do not offer one already, you must arrange a workplace pension scheme for staff who qualify. If staff meet the following criteria they should be enrolled.
  • They are aged between 18 and State Pension age
  • They are not already in a workplace pension scheme
  • They usually work in the UK
  • They are classed as a ‘worker’
Employers must pay at least 3% of an employee’s ‘qualifying earnings’ into their staff’s pension scheme. Under most workplace pension schemes, it is the employee’s total earnings between £6,240 and £50,270 a year before tax. Total earnings include:
  • standard salary
  • commission and bonuses
  • overtime
  • sick pay
  • maternity, paternity or adoption pay
The Pension Regulator website has some excellent resources to guide you. We are also able to assist and advise you, so please contact us if you require any further clarification.