Working out auto-enrolment contributions for staff with varying hours and pay

The Government’s auto-enrolment legislation is confusing enough as it stands – but how does it work for staff with irregular hours, or varying pay?

Put simply, in situations such as these, the pension contributions that both you and your staff make towards a qualifying pension scheme must rise and fall in relation to the amount that such employees are earning, The Pensions Regulator (TPR) has said.

In some cases, both employer and employee will be exempt from paying any contributions at all – but this will only apply below an individual income threshold of £192 per week, or £833 per month (for workers aged between 22 and state pension age).

However, in most cases, any irregular staff must be placed onto a qualifying pension scheme. From there, you as an employer will need to keep track of their earnings in order to adjust contributions accordingly.

At Moore Thompson, our payroll team can manage all of the necessary changes to your payroll so that your employees’ pay is correctly adjusted. We can also offer advice and support relating to all aspects of auto-enrolment. For more information about our payroll services, please contact us.