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Workplace Pensions | Nannytax

Workplace Pensions

Workplace Pensions for Nannies

All UK employers must formally assess their employees’ eligibility for a workplace pension, send letters to their employees confirming their status, and enrol their employees into a workplace pension scheme if they meet the criteria. Once enrolled into the pension scheme, both the employer and employee contribute to the pension. Learn more about workplace pensions below or find out about our nanny pension service subscription add-on.

What is Auto enrolment?

Auto enrolment is a government initiative which requires all UK employers to ‘automatically’ enrol any qualifying employees into a workplace pension scheme and make contributions towards that pension.

The employer must submit a ‘Declaration of Compliance’ to The Pensions Regulator within 5 months of becoming an employer.

Every three years the employer must also:

  • ‘re-declare’ their compliance with The Pensions Regulator
  • re-assess and potentially re-enrol employees who previously chose to leave the pension scheme.

The costs of Automatic Enrolment

The table below shows the minimum percentage that you, your nanny and the Government will contribute towards the pension.


Dates Employer Nanny Government Total
Prior to 6th April 2019 2% 2.4% 0.6% 5%
(Present) 6th April 2019 onwards 3% 4% 1% 8%
As part of the Pensions Act 2008, all UK employers must ‘automatically enrol’ their qualifying employees into a workplace pension as soon as they begin working for them.

Does my nanny qualify for a workplace pension?

Your nanny qualifies for a pension scheme if they:

  • Are aged between 22 years old and the State Pension Age.
  • Earn £10,000 or above per annum.

What is the risk of not offering a pension scheme?

If an employer does not pay pension contributions that are due or declare their compliance, they can be fined by The Pensions Regulator.

What if my employee doesn’t qualify but still wants a pension?

If your employee does not qualify for a workplace pension, they still have the right to join one at any time by ‘opting in’.

If your employee does not qualify for a workplace pension, they still have the right to join one at any time by ‘opting in’.

What if staff do not wish to join a pension scheme?

Even if your employee does not wish to join/remain in the pension scheme, it remains a legal requirement to enrol them into one initially (if they qualify).

Once an employee has been enrolled into a pension scheme, they can choose to either ‘opt out’ or ‘cease membership’ of the scheme:

Opt Out 

Your employee has one month from the date they are enrolled to contact the pension scheme provider directly and ‘opt out’. A refund of any contributions paid is then processed.

Cease Membership 

After the one month ‘opt out’ window ends, an employee can still request to ‘cease membership’. Any contributions made to that date would not be refunded but would remain in their pension pot.

Nannytax and Nanny Pensions

This may be the first you heard about pensions and auto enrolment duties when employing a nanny. Don’t worry Enable Autoenrol is our fully-managed pension service and that means our team of pension specialists can take this off your hands – phew! Learn more about our Nannytax subscription and add-ons below.

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Nanny Pensions

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Employers Checklist

If you’ve never employed someone before, our employers checklist is designed to help make taking on a nanny for the first time less daunting.

Tax & National Insurance

If you are employed you must pay Tax and NI on your earnings, however, legally it falls to the employer to ensure these Tax and NI deductions are made. This is where a Nanny PAYE Scheme comes in.