All employers in the UK, including nanny employers, must provide a workplace pensions for all employees who qualify under the new Workplace Pension (Automatic Enrolment) legislation.
Do nannies qualify for a pension?
- Nannies who are aged between 22 and the State Pension Age and earn above £10,000 gross per annum will qualify for a Workplace Pension.
- Most nannies will need to be automatically enrolled into the pension scheme.
- Both the nanny and the employer will have to contribute to the scheme.
- Nannies who do not qualify for automatic enrolment still have the right to ask to join a Workplace Pension.
- If you do qualify, you can always opt out of the pension scheme if you do not want a pension.
When is this going to happen?
The new rules are being phased in gradually, which means that you could be enrolled anywhere from 1 June 2015 to 1 February 2018.
Once it has happened, your employer will have to send you a letter telling you if you have been enrolled. If you have not been enrolled you will still get a letter which will explain why.
You can find out more about whether or not you qualify for automatic enrolment here.
How much do I have to contribute?
|Prior to 6th April 2018||1%||0.8%||0.2%||2%|
|(Present) 6th April 2018 - 5th April 2019||2%||2.4%||0.6%||5%|
|6th April 2019 - onwards||3%||4%||1%||8%|
The contributions are a percentage of the nanny’s gross salary.