Employers must offer and contribute to a workplace pension scheme for each eligible employee, (referred to in the enabling legislation as an “eligible jobholderâ€). An eligible jobholder is someone who:
- Works in the UK
- Is aged between 22 and the State Pension age
- Has earnings that exceed £10,000 per annum
- Is not already an active member of their employer’s qualifying scheme at the date they become eligible for auto-enrolment
- Is not within a category of jobholders that are excluded
The £10,000 threshold prevents most low-paid or part-time employees from being included in the scheme. Exclusions to be aware of include:
- Those employees who are working their notice period within six weeks from the staging date
- Those who have an employment contract but work in another European Economic Area state.