Yes, as an employer in the UK, you are required to provide a pension scheme for your employees. This requirement falls under the auto-enrolment regulations introduced by the government to encourage saving for retirement. Here are the key points you need to know:

Auto-Enrolment Obligations

1. Eligible Employees:
   • Age: Employees aged between 22 and the state pension age.
   • Earnings: Employees earning over £10,000 per year (as of the 2023/24 tax year).
2. Duties of Employers:
   • Auto-Enrolment: Automatically enroll eligible employees into a qualifying workplace pension scheme.
   • Contributions: Both employer and employee must make contributions to the pension scheme.
3. Contribution Rates:
   • Employer Contribution: Minimum of 3% of the employee's qualifying earnings.
   • Employee Contribution: Minimum of 5% of the employee's qualifying earnings, which can include tax relief.
   • Total Contribution: Combined minimum contribution of 8% of the employee's qualifying earnings.
4. Qualifying Earnings:
   • Qualifying earnings include salary, wages, bonuses, overtime, statutory sick pay, statutory maternity pay, paternity pay, and adoption pay.
   • The earnings between £6,240 and £50,270 are used to calculate contributions (as of the 2023/24 tax year).
5. Opting Out:
   • Employees have the right to opt out of the pension scheme after being auto-enrolled.
   • Employees who opt out within one month of enrolment are entitled to a refund of any contributions made.
   • Employees who opt out can be re-enrolled every three years if they meet the eligibility criteria.
6. Re-Enrolment:
   • Every three years, employers must re-enrol employees who have previously opted out if they meet the eligibility criteria at the time of re-enrolment.
7. Communication:
   • Employers must provide eligible employees with written information about their auto-enrolment rights, how the scheme works, and their contributions.
   • This communication must be clear and provided within specific timeframes.
8. Choosing a Pension Scheme:
   • Employers can choose from various pension providers or use the National Employment Savings Trust (NEST), which is a government-backed pension scheme designed for auto-enrolment.
9. Compliance and Penalties:
   • The Pensions Regulator oversees compliance with auto-enrolment duties.
   • Employers who fail to comply may face enforcement actions, including fines and penalties.

Summary

As an employer in the UK, you are required to automatically enroll eligible employees into a workplace pension scheme and contribute to their pension. Ensuring compliance with auto-enrolment regulations is crucial to avoid penalties and support your employees' long-term financial well-being.

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