Fluctuating hours and pay overview script
Assessing staff whose hours and pay varies
For automatic enrolment, you must put certain staff into a workplace pension and pay into it.
You must assess the age and earnings of all your staff, each time you pay them.
Anyone who is between 22 up to State Pension Age and who earns over a certain amount must be put into a pension scheme.
When your staff’s hours and pay vary, it can affect when they must be put into a scheme and how much you both pay in.
If at any time your staff meet the age and earnings threshold for automatic enrolment, you will need to put them into a scheme.
Once they are in a scheme, as their pay varies, this will affect how much you need to put into the scheme.
So you’ll need to calculate the contributions to be made to the scheme each time you pay them.
The contributions you and your member of staff make to the scheme will rise and fall depending to the amount they earn.
Below a certain amount, you may not need to pay any contributions at all but they remain in the scheme.
When you assess your staff’s earnings, you’ll need to include other types of pay, such as commission, bonuses, overtime, and statutory pay, as well as their salary or wages.
For more information on assessing staff with fluctuating hours and pay and to use our online tools go to The Pensions Regulator website. www.tpr.gov.uk/fluctuating