Qualifying Criteria for the Work Place Pension
Whether or not your nanny qualifies for the work place pension depends principally on your nanny’s age and their earnings. The new law requires every employer to automatically enrol workers into a work place pension scheme if they are aged between 22 and the State Pension Age, and earn over £10,000.00 per annum.
If nanny is automatically enrolled in a pension, they can opt-out up to 30 days after the initial set up has been completed and get a refund on the amounts which have been deducted from their salary. They must complete and return an opt-out form and inform their pension provider.
If your nanny does not qualify to be automatically enrolled they still have the right to join a work place pension. This is known as a Non-eligible job holder.
Non-eligible job holder is an employee who doesn’t have to be automatically enrolled into a work place pension, but can ask to be joined into a pension scheme if so wish. If they do, both the employer and the nanny will have to pay into the pension pot each month.
The minimum auto enrolment contribution rates are currently 8% of qualifying earnings. This is split between 3% which must be paid by the employer and 5% which must be paid by the employee.