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How to understand the government auto-enrolment work place pensions policy


The NHF offers members rigorous support that includes the often complex stuff that most people try and avoid, like pensions! Theyve partnered with pensions experts Towergate Financial to offer their members a low stress scheme. Whatever your status: employer, self-employed, employee, its info that will affect you. You can find more info at but heres the nubbins of it.

Tip 1: Dont panic but auto-enrolment is the LEGAL change to pension provision that means employers now have a statutory duty to automatically enrol eligible workers into a work-based pension and make an employer contribution towards it. It has been in force since October 2012 but has been rolled out in stages with the largest employers going first. By 2018 every employer with one or more employee will need to participate.

Tip 2: Employees between 16 and 21 or earning less than 5,722 pa and employees over 74 have a right to participate in an employers pension scheme. Employees aged 22 – state pension age earning over 10000 pa must be automatically enrolled in an employers pension scheme.

Tip 3:Under the new regulations, employers and employees need to make a minimum level of contributions to the scheme. You will need to deduct your employees contributions and make sure you pay them on time. The NHF Pension Scheme offers member software that helps automate this process. You need to decide what youre going to base your contributions on. There are four different ways of assessing salary and how much you and your employees will have to pay into the scheme. Each employer needs to work out which method is most appropriate for them.

Tip 4: The four ways to assess earnings are branded earnings, paid on all of the employees PAYE earnings between 5,722 and 41,865. Pensionable earnings, which must be at least 85% of the employees total PAYE earnings. Basic salary based on basic salary only. P60 earnings, based on the employees total P60 earnings.

Tip 5: Dont stick your head in the sand. You dont have to look too far for great support for the barbering industry and small business employers, so start by taking a look at

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