'Qualifying pay' changes each year, but for now contributions are paid on annual earnings between £5,824 and £42,385. You can elect to make payments on employees’ earnings outside of this range if you wish, but employees cannot be forced to increase their statutory contributions.

Calculating qualifying pay is not straightforward, and may need to be calculated on a weekly or monthly basis. If in doubt, you should speak to your accountant or financial adviser for help.

In addition to the above requirements, there are record-keeping and reporting obligations that you must comply with.

Suitable auto-enrolment schemes are offered by most of the large insurance firms, as well as by organisations which have been established specifically for the purpose. There is also a government-sponsored scheme called the National Employment Savings Trust (NEST) which, unlike other schemes, is not allowed to reject applications.