Step 4 Who gets enrolled?
These regulations cover anyone who employs someone and could include carers, gardeners or cleaners, depending on how they are employed. It is important to review contracts of employment, whether written or verbal, to determine how individuals will be affected by auto enrolment. The table below outlines the duties based on age and salary.
Companies first have to determine who is considered to be a ‘worker’. This would normally include those who have a contract of employment, but could also include contractors, temporary staff, potentially some agency staff and self-employed people. It is not safe to rely on the exemption known as IR35.
Monthly Earnings
Age
From 16 to 21
From 22 to state pension age
From state pension age to 74
£490 and below
Has a right to join a pension scheme No obligation on employers to contribute
Over £490 and up to £833
Has the right to opt in
Over £833 Has a right to opt-in Automatically enrolled Has a right to opt-in Please note that the thresholds quoted above are in respect of the Tax Year 2017/18. These figures are based on monthly earnings, these will need to be adjusted to reflect different pay frequencies.
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