Who is eligible for automatic enrolment?

Employees fall into three categories – Eligible, Non-Eligible and Entitled.

Here’s what this means:

Eligible – means they’re in. They’re automatically enrolled into a workplace pension

They are over 22 (and under state pension age) and earn over £10k a year (£833 per month). They will contribute to your pension and so will your company.

Non-Eligible – means they’re not automatically in but they will be invited to ‘opt in’.

They are under 22 and/or earn less than £10k a year (but over £6,032 a year). If they opt in they will contribute to their pension and so will your company.

Entitled – means they’re not automatically in but they will be invited to ‘join’ – although your company does not need to make contributions.

They earn less than £6,032 a year. If they opt in they can decide how much to contribute to their pension each month (the default is to contribute the minimum contributions set by the Government) but your company does not have to make contributions – although you may decide that you want to.

Catherine Pinkney

Posted on Sunday 9 Oct, 2016, 2 years ago

April 18, 2018

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