Worker Categories

There are three classifications of employee in your business under the new auto-enrolment rules.  These are:

  1. Eligible Jobholders
  2. Non-eligible Jobholders
  3. Entitled Workers

The Eligible Jobholder is the type of defined ‘Worker’ that must be offered an auto-enrolment pension scheme, unless your existing pension scheme is a Qualifying Scheme (see here).  These are workers who:

– are aged between 22 and state pension age

– are working or ordinarily work in the UK under their contract

– have qualifying earnings in the relevant pay reference period that are above the earnings trigger for automatic-enrolment – currently £10,000 (for 2015/16).

The two other staff categories

The other two types of Worker, as defined by the Pensions Regulator, that Employers have a duty towards are:

Non-eligible Jobholders – these are Workers who:

  • Have earnings below the earnings trigger for Automatic-enrolment – currently £10,000 – but above the lower earnings threshold – currently £5,824, or
  • Are aged between either 16 – 21, or State Pension Age to 74

These staff have a right to opt-in and the Employer must pay a contribution for them.

Entitled Workers – these are Workers who:

  • Have earnings below the lower earnings threshold – currently £5,824 –ages 16 or above but below 75

These staff have a right to opt-in, but the Employer does not need to pay a contribution for them, unless it’s part of their contract.