In UK most workers will be required to join a workplace pension scheme by their employers. From the staging date the employees would have to choose whether they want to join the scheme or ‘opt out’. If the employees choose to opt out of the scheme they would have to join the pension scheme for at least one month before opting out. Any contributions they have made into the pension would be refunded back to the employees and the employers.
The opt out would be for a maximum of 3 years where after the end of 3 years they would be required to enroll for another month before opting out. This cycle would continue until the employees leave the employment or if they choose to remain in the pension scheme.
Employees and employers can continue to contribute into the pension scheme in order to build their retirement pot.
If an employer employs at least one employee and they are getting paid through the PAYE then automatic enrolment applies to them.
Below table will help to assess when your staging date https://acfa-cashflow.com/ is so you can be prepared as to when your duties apply.
Table 1: Staging Dates for employers who set up after 1 April 2012
| Date PAYE income first payable | Staging date |
| Between 1 April 2012 and 31 March 2013 | 1 May 2017 |
| Between 1 April 2013 and 31 March 2014 | 1 July 2017 |
| Between 1 April 2014 and 31 March 2015 | 1 August 2017 |
| Between 1 April 2015 and 31 December 2015 | 1 October 2017 |
| Between 1 January 2016 and 30 September 2016 | 1 November 2017 |
| Between 1 October 2016 and 30 June 2017 | 1 January 2018 |
| Between 1 July 2017 and 30 September 2017 | 1 February 2018 |
How much you must pay
The minimum contributions that you must pay into your staff’s pension scheme are shown in the table below – they’re currently a total contribution of 2% with at least 1% employer contribution.
Minimum contributions are being introduced gradually over time. You will usually pay pension scheme contributions either as a fixed amount or based on a percentage of earnings.
| Date | Employer minimum contribution | Total minimum contribution |
| Employer’s staging date to *05/04/18 | 1% | 2% (including 1% staff contribution) |
| *06/04/18 — *05/04/19 | 2% | 5% (including 3% staff contribution) |
| *06/04/19 onwards | 3% | 8% (including 5% staff contribution) |
*The proposed dates are subject to Parliament approval
When you must pay your contributions
Payments for the contributions needs to be paid on time to your pension scheme. This includes calculating and deducting contributions from your staff’s salaries. The law states that the contributions for the pension scheme must be paid no later than 22nd of the next month. There are special rules for the first deduction of contributions on automatic enrolment under the Pensions Act 2008.
You risk being fined by the regulator if you don’t pay on time.
You may agree an earlier date to pay your employer contributions with your trustees or administrators. However, it’s easier if you pay your contributions on the same day as your staff contributions.
In UK most workers will be required to join a workplace pension scheme by their employers. From the staging date the employees would have to choose whether they want to join the scheme or ‘opt out’. If the employees choose to opt out of the scheme they would have to join the pension scheme for at least one month before opting out. Any contributions they have made into the pension would be refunded back to the employees and the employers.
The opt out would be for a maximum of 3 years where after the end of 3 years they would be required to enroll for another month before opting out. This cycle would continue until the employees leave the employment or if they choose to remain in the pension scheme.
Employees and employers can continue to contribute into the pension scheme in order to build their retirement pot.
If an employer employs at least one employee and they are getting paid through the PAYE then automatic enrolment applies to them.
Below table will help to assess when your staging date is so you can be prepared as to when your duties apply.
Table 1: Staging Dates for employers who set up after 1 April 2012
| Date PAYE income first payable | Staging date |
| Between 1 April 2012 and 31 March 2013 | 1 May 2017 |
| Between 1 April 2013 and 31 March 2014 | 1 July 2017 |
| Between 1 April 2014 and 31 March 2015 | 1 August 2017 |
| Between 1 April 2015 and 31 December 2015 | 1 October 2017 |
| Between 1 January 2016 and 30 September 2016 | 1 November 2017 |
| Between 1 October 2016 and 30 June 2017 | 1 January 2018 |
| Between 1 July 2017 and 30 September 2017 | 1 February 2018 |
How much you must pay
The minimum contributions that you must pay into your staff’s pension scheme are shown in the table below – they’re currently a total contribution of 2% with at least 1% employer contribution.
Minimum contributions are being introduced gradually over time. You will usually pay pension scheme contributions either as a fixed amount or based on a percentage of earnings.
| Date | Employer minimum contribution | Total minimum contribution |
| Employer’s staging date to *05/04/18 | 1% | 2% (including 1% staff contribution) |
| *06/04/18 — *05/04/19 | 2% | 5% (including 3% staff contribution) |
| *06/04/19 onwards | 3% | 8% (including 5% staff contribution) |
*The proposed dates are subject to Parliament approval
When you must pay your contributions
Payments for the contributions needs to be paid on time to your pension scheme. This includes calculating and deducting contributions from your staff’s salaries. The law states that the contributions for the pension scheme must be paid no later than 22nd of the next month. There are special rules for the first deduction of contributions on automatic enrolment under the Pensions Act 2008.
You risk being fined by the regulator if you don’t pay on time.
You may agree an earlier date to pay your employer contributions with your trustees or administrators. However, it’s easier if you pay your contributions on the same day as your staff contributions.
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