As well as having a significant impact on Employers, the change also affects all workers between age 16 and age 75 who work, or usually work, in the UK.

We can help assess your employees for you and also calculate before your Staging Date what the costs are likely to be for your business.

Workers includes employees and others who are contracted to work for you, except as part of their own business. Agency workers are included, and you are likely to be responsible if you pay them directly.

Workers will be eligible jobholders if they:

  • are aged 22 or over;
  • are under state pension age (a moving target, these days); and
  • earn more than £10,600 a year in 2015/16. This figure currently matches the income tax personal allowance.

Eligible jobholders must be automatically enrolled into a suitable pension scheme unless they are members of an existing ‘qualifying scheme.’ You cannot assume that a current scheme will necessarily be suitable for Automatic Enrolment, because it may not meet the requirements for payment levels or include an appropriate agreement with the pension provider.

There is a second group of workers known as non-eligible jobholders. They are workers who:

  • earn more than £5,772 a year in 2014/15; and
  • are not eligible jobholders.

Non-eligible jobholders must be offered a pension on the same basis as eligible jobholders, but they must apply to join rather than being automatically enrolled.

The final group is of those over age 16 who earn under £5,772 a year, and who are known as entitled workers. You have to offer them access to a pension scheme, but you do not have to pay into it.