What is Auto Enrolment?
Who does it affect?
All businesses must automatically enrol all employees who are:
Aged over 22
Under the state pension age
Work in the UK
Earn over £9,440 a year (this amount will be reviewed each year)
Part-time workers who earn less than that can ask to take part if they want to and, if they earn more than £5,564, their employer will be obliged to make a contribution too.
Those aged under 22, or over state pension age and still working, can also opt-in in the same way.
The total minimum contribution will start at 2% of a worker's gross earnings (of which at least 1% must be paid in by the employer). By April 2019 this minimum will have risen to 8%, made up of at least 3% from the company, up to 4% from the employee, and 1% tax relief.
When does the new law kick in?
Large employers were required to implement auto enrolment first, partially because their additional resources allowed them to find a scheme best suited to their workforce more quickly as well as the best technology to help them implement it.
1 Oct 2012 - 5 April 2018
6 April 2018 to 5 April 2019
6 April 2019 onwards