FOR AGENCY WORKERS
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 are obliged to provide a workplace pension for all of their employees that meet certain criteria. Under the Pensions Act 2008, it started with the largest employers in 2012, and every other employer became part of the scheme by 1st February 2018 over various staging dates. Diverse Employment were an early adopted of the scheme and all agency workers working through us, and direct employees, will automatically be entered into this work based pension scheme upon commencement of their employment (should they meet the criteria).
The criteria for qualifying for the auto-enrolment scheme are:
- 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 2019/20
What will my contributions be?
|Date||Total Minimum Contribution||Minimum Employer Contribution||Minimum Employee Contribution|
|October 2018 onward||8% of total salary||3% of total salary||5% of total salary|
Note: Qualifying earnings where 8% contributions are calculated upon for 2019/20 have been set by the Government at £6,136 for the lower limit, and £50,000 for the upper limit.
- 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.