Auto-Enrolment Pension Scheme

What are Auto-Enrolment Pensions?


Auto-Enrolment Pensions have been introduced by the Government to encourage a retirement savings culture in the UK.

All employers will be obliged to provide a workplace pension for all employees that meet a certain criteria. Under the Pensions Act 2008, it started with the largest employers in 2012, and every other employer will have to become part of the scheme by 1st February 2018. Diverse Employment are already in the scheme and all employees working through us will automatically be entered into this work based pension scheme (should they meet the criteria).

The criteria for qualifying for the auto-enrolment scheme is:

  • That individuals are aged over 22 but under state pension age
  • That they work in the United Kingdom
  • That you earn more than £10000 per year for tax year 2016/17

What will the contributions be?

Date Total Minimum Contribution Minimum Employer Contribution Minimum Employee Contribution
October 2012 to September 2017 2% of total salary 1% of total salary 1% of total salary
October 2017 to September 2018 5% of total salary 2% of total salary 3% of total salary
October 2018 onward 8% of total salary 3% of total salary 5% of total salary

Useful Notes

  • You will be automatically enrolled into the scheme, however you have the option to opt-out of the scheme at any point if you don’t wish to make the contributions for any reason.
  • If you are to opt-out, you will need to do so in the first month to get any contributions refunded back. If you were to opt-out after that, any contributions already made will stay in your pension pot.
  • This workplace pension scheme is transferable between employers. If you were to work for different employers over the year, you can move this pension scheme to your new employer.