An employee who must be auto-enrolled and is:
- aged between 22 and State Pension age (SPA) and
- earns above £10,000 a year / £833 a month / £192 a week (2021/2022 tax year) – known as the earnings trigger and
- working or ordinarily working in the UK.
These employees must be put into a pension scheme and have money paid into their pension pots on a regular basis.
If you’ve been described as an ‘eligible’ employee before, you may hear this now classed as ‘type 1’ (‘entitled’ and ‘non-entitled’ employees are now known as ‘type 2’). It’s just one of the ways The Pensions Regulator is simplifying jargon to make it less complicated.