All new businesses set up from 1 October 2017 will need to make sure they offer to enrol their staff into a workplace pension as soon as they employ them. This is due to the immediate duty to enrol introduced by the Government. The duty applies to the business if it employ staff members in the UK classed as a ‘worker,’ aged between 22 and State Pension age, earning at least £10,000 per year.
For each employee that meets the criteria, you will need to ensure that they are automatically enrolled into a workplace pension.
From 6 April 2018, the minimum contribution for a workplace pension will also increase. Currently, both the employer’s and the employee’s minimum contribution is 1% on the employee’s earnings.
From 6 April 2019 onwards, that will increase to 3% and 5% respectively. What is classed as ‘earnings’ for these purposes will depend on the pension scheme you choose and you will need to refer to the rules of the scheme to ensure you contribute the correct sum.