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Pensions For Nannies 2017

By February, 2018 every employer, with at least one member of staff, will be required by law to provide a workplace pension, as long as their employees meet the qualifying criteria. Many people have assumed, mistakenly, that this is directed toward small business owners and their employees rather than the individual. In reality the new law means that people who employ a children’s nanny, gardener, carer, housekeeper or any other form of assistant, will have to provide a workplace pension and also make contributions as the employer.

This is not a new decision by any means and the Government have been employing various methods, including TV advertising, to let everyone know exactly what will take place and the steps they should take to ensure they comply with the regulations. However, many people remain unclear about exactly what this means for both the employer and the employee.

The Facts For The Employee

  1. If you are a Nanny, Gardener or Housekeeper, etc., your employer must enrol you into a workplace pension before February, 2018.
  2. If they haven’t already taken this step they will receive letters from The Pensions Regulator in the next few months.
  3. As the employee you are entitled to opt out but you will be missing out on a contribution from your employer.
  4. There is a calculator which you can use to find out the minimum contribution that your employer will need to make to your workplace pension once you have been automatically enrolled.
  5. If your employer fails to register on the Government Workplace Pension Website they could face fines of £400, plus £50 per day until they register, even if you do not fall within the criteria.
  6. Previously it was assumed that those who paid less, perhaps for part-time work, would be spared the requirements; however, this is not the case.

The Facts For The Employer

The Government have provided an online guide that has been written specifically for employers with between one and 50 staff, many of whom will have limited pensions experience. The guide provides all relevant information in simple terms, for example:

  • When you must be ready – You will receive a letter from the Pensions Regulator.
  • Who is the point of contact (AE Contact) – This will normally be yourself.
  • Who should be enrolled – See below for the criteria.

As the Employer you must enrol your staff and make an employer’s contribution for everyone who:

  • Is not already in a Workplace Pension Scheme
  • Is aged between 22 and the State Pension age
  • Earns at least £10,000 a year
  • Works in the UK

What Does Automatic Enrolment Mean?

  • This means that UK employers will be obliged to provide a qualifying workplace pension scheme and automatically enrol their workers. Employers then contribute to their workers’ pensions every pay period.
  • You can use The Pensions Regulator’s Duties Checker to find out what you need to do and when you need to do it. If you already have a workplace pension scheme, you must ask the provider if it meets the automatic enrolment rules.
  • You will be required to pay at least 1% of your employee’s ‘qualifying earnings’ into your workplace pension. This may rise to 3% in 2019 if the move is approved by Parliament.
  • You will deduct contributions from your employee’s pay every month and these must be paid into your staff pension scheme. You must also pay your contributions, for each employee, by the date you’ve agreed with your provider.
  • If you pay late or do not contribute the minimum required for each member of staff you may be fined by The Pensions Regulator.

The above information is by no means a comprehensive guide, but it will have provided a few key points to help you to understand the requirements of this regulation. If you require additional information, it can be found on the Government Website here:

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