Does my employer have to auto Enrol me?

Your employer must automatically enrol you into a pension scheme and make contributions to your pension if you’re eligible for automatic enrolment. If your employer does not have to enrol you by law, you can still join their pension scheme if you want to. Your employer cannot refuse.

Who is exempt from pension auto Enrolment?

If a director does not have an employment contract, they cannot be a worker and are therefore always exempt from automatic enrolment. This means that an organisation with one or more directors who do not have contracts of employment is not an employer if it does not have any staff other than the director(s).

Is my company exempt from auto Enrolment?

Is my company exempt from auto-enrolment? You won’t have any auto-enrolment responsibilities if any of the following conditions apply: you’re a sole director of an organisation or business with no other staff.

Who is eligible for pension auto Enrolment?

Director eligibility for automatic enrolment If a director has an employment contract, and at least one other member of staff – who can be another director – also has an employment contract, they all need to be assessed for automatic enrolment.

When should a new employee be auto enrolled?

Your income may vary, but if at any point, you earn more than the eligibility threshold for your pay period, your employer should auto-enrol you at that time (or after three months if they have decided to postpone you).

Does my employer have to match my pension contributions?

No. An employer doesn’t have to match employee contributions. Currently, the minimum contribution is 8% of qualifying earnings, of which at least 3% must be paid by the employer.

What is the threshold for auto Enrolment?

Earnings thresholds for previous tax years

Pay reference period
2020 – 2021 Annual 1 week
Lower level of qualifying earnings £6,240 £120
Earnings trigger for automatic enrolment £10,000 £192
Upper level of qualifying earnings £50,000 £962

How does pension auto enrollment work?

Auto enrolment is designed so that eligible workers who want to build up savings for retirement can do so without having to take any action themselves. If you’re eligible, your employer will automatically enrol you into a pension scheme and deduct your pension contribution from your salary.

Do directors have to Enrol in pension scheme?

If an employer chooses to not enrol a director, they’ll still need to communicate to them and complete their declaration of compliance. A director still has the right to opt in or join a workplace pension. If they make this request, the employer must enrol them (unless they’re in their notice period).

What are the rules for auto enrolment?

To be eligible for auto enrolment, employees must: Be at least 22 years old, but under State Pension age.

What age do you get auto enrolled into a pension?

22 or over
Automatic enrolment only applies to workers aged 22 or over. But if you’re younger – and earning £6,240 or more (in tax year 2022-23) – you can still opt in and benefit from extra money from your employer.