Pension contributions

All SMEs Must Contribute to Pensions by 2016

All small businessess will be obliged to enrol their staff in a pension scheme from 2016, the Government has announced, following the end of an independent consultation. The decision means that for the first time employers will have to make pensions contributions to eligible workers. Large businesses will be obliged to enrol staff in a pension scheme automatically by October 2012, medium firms (50 to 1,249 employees) by July 2014 and small firms (fewer than 50 employees) by February 2016. Firms that are formed after 2012 will not have to comply until September 2016. The reforms mean that employers will have to make compulsory minimum pension contributions for all workers aged over 22 and earning at least £5,035 a year. Businesses can either offer a company pension scheme or enrol their sta... »