The content on this page is based on the law as it stands today. However, the Government has announced a review of how best to support the implementation of automatic enrolment into workplace pensions and therefore the content is subject to change. The review is expected to conclude by 30 September. Further detail can be found on the DWP website.
Staging
The employer duties will be staged over four years from October 2012 to 2016, starting with the largest to medium-sized employers, followed by small and micro employers.
The size of an employer will be based on PAYE data.
Subject to certain conditions, employers will be able to automatically enrol their employees in advance of their staging date but not before October 2012.
- The duties will be introduced by the size of employer with the new duties applying to the largest to medium-sized employers up to July 2014, followed by small and micro employers from August 2014 to February 2016.
- New PAYE schemes will be staged in at the end of the staging period from March 2016.
Phasing – DC schemes
The minimum contribution levels for DC schemes are not being introduced in full at the start. Instead they are being 'ramped-up'. This is referred to as 'phasing'.
The obligations will be built up over three phases, with the final phase being when contributions have reached the final minimum levels:
| Phase | Duration | Employer minimum contribution | Total minimum contribution |
|---|---|---|---|
| 1 | 1 October 2012 to 30 September 2016 | 1% | 2% |
| 2 | 1 October 2016 to 30 September 2017 | 2% | 5% |
| 3 | 1 October 2017 onwards | 3% | 8% |
Jobholders will get tax relief on their contributions.