Providing a pension
Every employer has a legal duty to help their workers in the UK save for retirement. As an employer, you’ll have duties in relation to everyone working for you:
- who is aged between 16 and 74
- who works in the UK
- for whom you deduct income tax and National Insurance contributions from their wages.
Automatic enrolment
From a certain date* employers must automatically enrol certain workers into a workplace pension scheme and make contributions towards it. The table below will help you work out if your personal assistant qualifies for automatic enrolment. Please check the thresholds and responsibilities every April as they may change.
*You can find out your date by visiting www.pensionsregulator.co.uk.
|
Your Personal Assistants annual salary |
|||
| Age of PA | Under £5772 | £5772 to £10,000 | Over £10,000 |
| Under 16 | Outside legislation | Outside legislation | Outside legislation |
| 16 -21 | Entitled worker | Non-eligible job holder | Non-eligible job holder |
| 22 – state pension age | Entitled worker | Non-eligible job holder | Eligible |
| State pension age – 74 | Entitled worker | Non-eligible job holder | Non-eligible job holder |
| Over 75 | Outside legislation | Outside legislation | Outside legislation |
An entitled worker can opt-in to a pension scheme, but you do not have to contribute to their pension.
An eligible job holder should be automatically enrolled into a pension scheme which you will need to contribute to. They do have the right to opt-out of this.
A non-eligible job holder isn’t automatically enrolled into a pension scheme, but should be given the opportunity to opt-in to one. If they opt-in you must contribute to their pension.
The law about automatic enrolment does not apply to someone listed as outside legislation.
For more information
The Pensions Regulator has an essential guide to automatic enrolment for people who employ their own care and supportwww.thepensionsregulator.gov.uk
The simple tools on The Pensions Regulator website help you to get to grips with your duties, including how you automatically enrol your staff, what the minimum employer contribution you need to make is and when you will need to start doing this.
Your personal assistant can choose to opt-out of your scheme at any time. If they do opt-out (you can set the deadline for this) you must refund all payments made by your personal assistant.