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Nannywage Ltd Automatic Enrolment Pensions
in association with NEST

Automatic Enrolment

All UK based employers must now provide a pension scheme for their workers.

Employers have to do this by a set date, which is called the Staging Date and this date is set by The Pensions Regulator.

If you use Nannywage Ltd payroll services, do not worry about the Staging date, or if you have not received your staging date letter from The Pensions  Regulator, as we at Nannywage Ltd constantly monitor all our clients to ensure we know your staging date and when to contact you regarding your start of pension compliance.

If the nanny qualifies, the employer must enrol them into a pension scheme by the Staging Date.

The Employer is free to choose the pension provider they wish to use.

Nannywage Ltd are unable to advise you on which pension provider you should choose to use. Whoever you choose, minimum contribution percentages are the same for all Automatic Enrolment schemes.

If you choose to use NEST (National Employment Savings Trust),the pension service provided by the government, Nannywage Ltd will fully manage your pension set up and continuing compliance each month or week, inclusive of all regulatory letters to your nanny, subject to you using Nannywage Ltd payroll service.

If you choose another pension provider, we will still show pension calculations on your wageslip, but you will have to administer the scheme.


A qualifying worker: This is a person between 22 years of age and state retirement, with earnings in excess of the current tax free earnings allowance. These workers are automatically enrolled into your pension scheme.

Non qualifying worker: The employer must still have a pension scheme in place, should the nanny choose to opt-in to the scheme.

Pension compliance: As an employer, you must enrol into a pension scheme and the Pension Regulator has the power to impose non-compliance fines. The Employer cannot tell their nanny not to join and if the employer does, again, the Pension Regulator has the power to impose fines.

Status of nanny: Regardless of the employment status of the nanny, such as a part time worker, the employer must have a pension scheme in place, as they may wish to opt in.

If the nanny does NOT want a pension: The nanny can opt out. The employer must still set up a pension scheme and enrol the nanny. The nanny must then contact the pension provider to arrange opt out.

If the opt out is completed in the first month, the nanny will receive a full refund. If the nanny opts out after the first month then they do not need to make further contributions, but the contributions made will remain in their NEST pension. The employer must maintain the pension scheme,should at any time the nanny change their mind and decide to opt in.

Contributions:  Currently, the contributions are 1% of qualifying earnings from the employer and 1% from the nanny. On the wageslip the nanny contributions will show as 80% of the contribution total required, as the government contributes 20p for every 80p the nanny contributes, making a tax efficient way for the nanny to save. Contribution percentages will rise over the next few years at times and rates set by the government. 

Qualifying earnings:  There are set earnings limits called the Lower Earnings Level and Upper Earnings Level. Each year these limits are set by HMRC. This amount is deducted from the pay and the contribution of 1% is calculated from the balance of salary. Each year we will, of course, automatically implement new LEL and UEL as set by HMRC.

What Nannywage Ltd NEST Pension service does for you

We write to you, well in advance of your staging date, to ask you what you want to do. Subject to you deciding to use NEST and subscribing to Nannywage Ltd payroll service:

What do you need to do as an employer

Nothing, until we contact you regarding your AE compliance registration, as Nannywage Ltd Pensions do everything on your behalf.

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