Eligibility status

In respect of automatic enrolment, workers are categorised as the following:

Eligible jobholder – needs to be automatically enrolled. They:
– are aged between 22 and State Pension age (SPA); and
– have qualifying earnings above the earnings trigger.

Non-eligible jobholder – doesn’t need to be automatically enrolled but can opt to join the scheme and the employer must make pension contributions if they do. They:
– are aged between 16 and 21 or SPA and 74; and
– have qualifying earnings above the earnings trigger.
or
– are aged between 16 and 74; and
– have qualifying earnings between the lower earnings threshold (currently £6,032 a year for the 2018/19 tax year) and the earnings trigger.

Entitled worker – doesn’t need to be automatically enrolled. They can ask to join a pension scheme but their employer does not have to enrol them in its automatic enrolment scheme and doesn’t need to pay contributions. They:
– are aged between 16 and 74; and
– have earnings less than the lower earnings threshold (currently £6,032 a year for the 2018/19 tax year).

More…

Please note, in some circumstances you may choose whether to automatically enrol certain groups of workers. For example, those who are in their notice period or those with any form of pensions tax protection. For more information, please visit The Pensions Regulator website.

For a list of our more commonly used terms and phrases please refer to our Glossary.

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