Simple guide to pensions (Automatic Enrolment)
Every employer in the UK, including nanny employers, must now put their qualifying employees into a pension scheme and, where required, pay pension contributions. This is called ‘automatic enrolment’.
- If your employee is over the age of 22 and under the state pension age and earns over £192 gross per week or £10,000 gross per year then they will be eligible. This means there are legal duties you must carry out, and continue to carry out in order to comply with this new government legislation.
- If your nanny is automatically enrolled they can opt-out if they wish to not take part.
- If your nanny does not qualify to be automatically enrolled they still have the right to join a Workplace Pension.
- Nannytax can take care of all your responsibilities with our fully managed workplace pension service for our clients, Enable Auto Enrol.
- The current Employer Contribution is 1%, Employee Contribution 0.8% and Government Contribution 0.2%.
- The contribution is due to increase from April 2018: Employer Contribution is 2%, Employee Contribution 2.4% and Government Contribution 0.6%.
- Input your nanny’s salary into the Nannytax calculator to get pension costs for you.