Auto-Enrolment

From October 2012, the government introduced reforms and all employers now have to offer automatic enrolment into a workplace pension to their employees who meet certain criteria.

Employers can use the government backed scheme, National Employment Savings Trust (NEST), or offer an alternative ‘Qualifying’ work place pension scheme such as a Group Personal Pension, providing it ticks certain boxes.

The process was phased in between 2012 and 2018 depending on the head count of a firm. Employers are required to contribute a minimum of 3% of salary with the employees making a personal contribution of 4% with tax relief of 1% added on top, which again, was being phased in gradually in April 2019.