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4759. What is Automatic Enrolment (AE)?.

Auto Enrolment is an initiative by UK government to encourage saving for employees for their old age. The law was introduced in beginning of October 2012.Under the guidelines, employers have to automatically enroll eligible jobholder into a workforce pension scheme, if they aren't already in one. Employees also have the right to ask their employer to enroll them into an Auto Enrolment pension scheme. Depending on the employee age and income, employers also make contributions to this pension scheme, adding to the contributions made by their employee's.

Employers must automatically enroll all employees who are:

  • It is Mandatory: Once the employer states the Auto Enrolment Staging Date, or by April 2018, all company eligible jobholders will be enrolled into Auto Enrolment.
  • Age: All eligible jobholder aged between 22 and the state pension age
  • Income: Earning more than 10,000 a year.
  • Location: All jobholders working in the UK.