The Employee’s Viewpoint – An Enforced Pay Rise

An employee will benefit from the enforced employer’s contribution but will also have to

make their own payment into the pension.

In the long run an employee will benefit from this mandatory savings process.

If you are an employee, you will fall into one of the following categories:

• Eligible Jobholder

• Non-Eligible Jobholder

• Entitled Worker

The vast majority of employees will fall in the category of “Eligible Jobholder”, i.e. those aged between 16 and 74 and earning in excess of £10,000 per annum. These all must be compulsorily enrolled. Those who fall outside of that age range or income level, will come under one of the other two categories. They do not have to be compulsorily enrolled but will have the option to join the pension scheme voluntarily.

Note: If the only employee(s) being paid on PAYE are directors of their own limited company, they will not have to set up an Auto-Enrolment Pension or be compulsorily enrolled.