The government have introduced new pensions legislation which will affect every employer and employee in the country. It’s called – Pension Auto Enrolment. For large employers the changes came into effect in October 2012, smaller companies are affected later.
The onus is on the employer to auto-enrol every qualifying employee into a pension scheme, either the government NEST or a suitable alternative. The basic contributions are 3% salary for the employer and 5% for the employee.
Get serious about Pension Auto Enrolment! There are serious fines for non-compliance to the rules