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Automatic enrolment and National Minimum Wage arrears

This guidance is for employers of personal care assistants who need to calculate pension contributions on National Minimum Wage (NMW) arrears.

It has been identified that some social care sector employers may not have been paying National Minimum Wage (NMW) for hours worked during overnight shifts where employees can sleep on the premises (sleep-in shifts).

For more information about deciding whether sleep-in shifts are counted as work see this guidance on how to tell HM Revenue and Customs (HMRC) if you’ve underpaid the NMW in the social care sector.

What you need to do

If you have identified that you need to pay NMW arrears to members of your staff, you may need to put affected members of staff that you had not previously had to put into a scheme into a scheme, or put them in from an earlier date than you did.

You may also need to calculate backdated contributions. If you have had your first re-enrolment date you will also need to repeat your re-enrolment assessment.

To work out what your automatic enrolment duties are as a result of paying these arrears, you will need to:

  • assess your staff
  • put your member of staff into a pension scheme (or put them in from an earlier date)
  • repeat your re-enrolment assessment (if applicable)
  • calculate and pay backdated contributions
  • tell your member of staff about the pension contributions you are deducting from their payment of NMW arrears

Further information