Set up and manage a workplace pension scheme

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Employers and eligible staff

Employers have to provide a workplace pension scheme for eligible staff as soon as your first member of staff starts working for you (known as your 鈥榙uties start date鈥�).

Check you鈥檙e an employer

You鈥檙e usually an employer if you deduct tax and National Insurance contributions from an employee鈥檚 wages.

if you鈥檙e not sure what your pension responsibilities are, for example you employ a carer or someone to work in your home.

Who you must enrol

You must enrol and make an employer鈥檚 contribution for all staff who:

  • are aged between 22 and the State Pension age
  • earn at least 拢10,000 a year
  • normally work in the UK (this includes people who are based in the UK but travel abroad for work)

If staff become eligible because of a change in their age or earnings, you must put them into your pension scheme and write to them within 6 weeks of the day they meet the criteria.

If you鈥檙e not sure what the state pension age is you can use the State Pension age calculator to find out.

You do not have to enrol an employee if they give you proof of their lifetime allowance protection.

View a printable version of the whole guide

Part of Get your business ready to employ staff: step by step

  1. Step 1 Decide what type of employee you need

    1. Check whether you need full time or part time staff
    2. Check the different types of employment status

  2. and Check you can afford to take on employees

    1. Check how much the National Minimum Wage is
    2. Find out how much National Insurance you need to pay for your employees
    3. Check how much sick pay your employees are eligible for
    4. Check how much you need to pay towards your employee's pension
    5. Check how much Maternity Leave you need to pay your employees
    6. Check how much Paternity Leave you need to pay your employees

  3. Step 2 Make your workplace safe and accessible for employees

    1. Prevent discrimination
    2. Make your workplace accessible for employees with disabilities or health conditions
    3. Keep employee information and data safe
    4. Fire safety

    You also need to make checks when you recruit and employ someone.

    1. Find out what you need to check when you employ someone

  4. Step 3 Register as an employer and set up PAYE

    You need to register with HMRC so you can pay tax and national insurance for your employees.

    1. Register as an employer and set up PAYE
    2. Choose how to run payroll
    3. If you decide to run payroll yourself, choose payroll software

  5. Step 4 Check your responsibilities around workplace pensions

  6. Step 5 Get Employers' Liability insurance

    1. Find out about Employers' Liability insurance

  7. Step 6 Recruit and employ staff

    1. Employ someone