AUTO ENROLMENT ELIGIBILITY

YOUR RESPONSIBILITIES AS AN EMPLOYER VARY

THERE ARE THREE CATEGORIES OF AUTO ENROLMENT ELIGIBILITY

Everyone can sign-up for a pension, but your responsibilities as an employer vary depending on their status.

eligible-job-holder

Eligible Jobholder

non-eligible-jobholder

Non-eligible Jobholder

non-eligible-jobholder

Entitled Worker

ELIGIBLE JOBHOLDER

These must, by law, be automatically enrolled into a scheme. An eligible employee is anyone who is:

  • Aged 22 to State Pension Age
  • Earning over £10,000

(Assuming the company itself is within the Auto Enrolment staging date) There is a minimum contribution that the employer must make, related to salary, although the employer can pay more if they wish. An eligible employee can choose to opt-out of making pension contributions from their own salary, but the employer cannot, and must make a pension contribution for them every month.

NON-ELIGIBLE JOBHOLDERS

This covers people who:

  • Aged 16-21 or State Pension Age to 74 and earning over £10,000

OR

  • Aged 16-74 and earning between £5,824 to £10,000

People in this group will not be automatically enrolled but must be offered the opportunity to join an automatic enrolment scheme.

There is a minimum contribution the employer must make, based on salary – although they can pay more. Employers cannot refuse to allow someone to opt-in; it is entirely the employee’s choice.

ENTITLED WORKER

These are:-

  • Aged 16 to 74
  • Earning below £5,824

Entitled workers must be offered the opportunity to join a pension scheme, but even if they do there is no obligation for the employer to contribute – although of course they can do so if they want.