Back in the depths of time, well, 2012, the Government introduced auto-enrolment to help more employees save for retirement. While most employers have complied with the initial setup, many still mistakenly believe it’s a one-and-done task. This is not the case, as the truth is that auto-enrolment is an ongoing legal responsibility, one that you, as an employer, cannot afford to overlook in 2025.
What Is Auto-Enrolment?
Auto-enrolment is actually a good idea! It is a government initiative which requires UK employers to enrol staff who are eligible into a pension scheme. It applies to employees aged between 22 and the state pension age who earn over £10,000 per year; they are automatically enrolled (this could change in 2025). Employers also must contribute to their employees’ pension fund on their behalf.
Ongoing Duties for Employers
Even if you’ve completed the initial duties, you still have regular tasks to fulfil. These are:
- Checking your workforce each pay period to identify newly eligible employees and ensure no one gets missed.
- Enrol new eligible staff automatically and manage opt-ins or opt-outs.
- Ensure pension contributions are calculated and paid on time.
- Re-declare compliance with The Pensions Regulator every three years, even if there’s been no change.
If you fail to do those mentioned above, it can result in fines and even regulatory action!
What’s New for 2025?
So far, no legislative changes have yet been made in 2025. The Government has confirmed its plans to:
- Reduce the minimum age for auto-enrolment from 22 to 18
- Remove the lower earnings threshold entirely
However, as of June 2025, these changes have not yet taken effect. That said, it’s important that employers stay informed, as they will impact your payroll duty if and when they are implemented later this year or next.
How Highland Payroll Services Can Help
To be honest, auto-enrolment compliance can be time-consuming, especially if you manage payroll in-house. At Highland Payroll Services, we are helping businesses across the Highlands and the UK stay fully compliant, from eligibility checks and contribution management to re-declarations and regulatory submissions.
We simplify the process, reduce errors, and make sure you’re never caught off guard by rule changes or reporting deadlines.
Let’s talk today about how we can make your Payroll run more smoothly.
