Under the new workplace pension rules, you may have to provide your nanny with a pension at your duty date (the commencement date of employment).
Before you set up a scheme you will need to work out which category of ‘worker’ your nanny falls into. There are three categories and which one your nanny falls into will depend on the age of your nanny and his or her earnings.
Here’s a table to show you which category your nanny falls into.
|Earnings (from 6th April 2023)||Age|
|16 - 21 year olds||22 to State pension age||State pension age to 74|
|Less than or equal to £6396||Entitled worker|
|Over £6396 and up to £10,000||Non-eligible job holder|
|£10,000+||Non-eligible job holder||Eligible job holder||Non-eligible job holder|
If your nanny falls into this category he or she will automatically be enrolled into a workplace pension scheme. You and your nanny will need to make contributions to the scheme.
Your nanny can choose to opt-out but you will have to re-enrol your nanny every three years if he or she is still working for the same family.
Non-eligible jobholders won’t automatically be enrolled into the scheme but if your nanny falls into this category he or she can ask to join and you will have to contribute.
Entitled workers won’t automatically be enrolled into a scheme but can ask to join a scheme and you’ll have to set one up, but you won’t have to pay into it.
Detailed guidance for employers from The Pension Regulator