Entitled Workers
What is an entitled worker for pension auto-enrolment? Understand rights for low-earning workers to join workplace pensions.
Last updated: 30 January 2025
Entitled workers can join workplace pensions but without mandatory employer contributions.
Definition
Who Qualifies
| Criteria | Requirement |
|---|---|
| Age | 16 to 74 |
| Earnings | Under £6,240/year |
| Location | Work in UK |
The Lowest Category
| Status | Entitled Worker |
|---|---|
| Earnings | Below £6,240 |
| Any age | 16-74 |
| Can join | Yes |
| Employer contributes | Not required |
Compared to Other Categories
All Three Categories
| Category | Earnings | Employer Contribution |
|---|---|---|
| Eligible jobholder | Over £10,000 | Required |
| Non-eligible | £6,240-£10,000 | If opt in |
| Entitled worker | Under £6,240 | Not required |
Key Difference
| Feature | Non-Eligible | Entitled |
|---|---|---|
| Earnings | Over £6,240 | Under £6,240 |
| Employer contributes | If join | Not required |
| Worker can join | Yes | Yes |
| Tax relief | Yes | Yes |
Rights
The Right to Join
| Right | Detail |
|---|---|
| Request membership | Of pension scheme |
| Employer must allow | Access to scheme |
| Own contributions | Can make |
| Tax relief | On contributions |
No Employer Contribution
| Position | Detail |
|---|---|
| Not required | To contribute |
| Can choose to | Voluntary |
| Worker still benefits | Tax relief |
Employer Duties
Allow Access
| Must | Do |
|---|---|
| Provide access | To scheme |
| Process request | If made |
| Set up deductions | If joining |
| Provide information | About scheme |
Don't Have To
| Not Required | To |
|---|---|
| Make contributions | Unless choose to |
| Automatically enrol | Not required |
| Match contributions | Not obligated |
Communication
| Should | Do |
|---|---|
| Inform of right | To join |
| Explain position | No employer contribution |
| Provide scheme info | If requested |
If They Join
Processing Membership
| Step | Action |
|---|---|
| 1 | Receive request |
| 2 | Contact scheme |
| 3 | Set up membership |
| 4 | Arrange deductions |
| 5 | Start contributions |
Contributions
| Who | Amount |
|---|---|
| Worker | Their choice |
| Employer | Zero (unless choose to) |
| Tax relief | On worker's contribution |
Why Join Without Employer Contribution?
Benefits for Worker
| Benefit | Value |
|---|---|
| Tax relief | 20%+ on contributions |
| Start saving | For retirement |
| Future increases | May earn more later |
| Employer may | Choose to contribute |
| Habit forming | Regular saving |
Example
| Contribution | Effect |
|---|---|
| Worker pays £80 | Into pension |
| Tax relief | £20 added |
| Pension pot | Receives £100 |
Employer Voluntary Contributions
Can Choose To
| Option | Detail |
|---|---|
| Make contributions | Voluntarily |
| Any amount | You decide |
| Matching | Popular approach |
| Fixed amount | Also works |
Benefits
| For Employer | Value |
|---|---|
| Employee goodwill | Valued benefit |
| Retention | Helps keep staff |
| Tax relief | On contributions |
| Equality | All staff benefit |
Common Situations
Very Part-Time Workers
| Example | Position |
|---|---|
| 5 hours/week | Low earnings |
| £5,000/year | Under £6,240 |
| Entitled worker | Can join |
| Employer | No contribution duty |
Multiple Jobs
| Example | Position |
|---|---|
| Job A £4,000 | Entitled worker here |
| Job B £15,000 | Eligible there |
| Each employer | Separate duties |
Young Workers
| Example | Position |
|---|---|
| Age 17 | Under 22 |
| Earning £5,000 | Under £6,240 |
| Entitled worker | Can request to join |
Record Keeping
What to Keep
| Record | Purpose |
|---|---|
| Worker category | Assessment |
| Requests made | To join |
| Membership | If joined |
| Contributions | If making |
If Status Changes
Earnings Increase
| If Earnings | Rise |
|---|---|
| Over £6,240 | Non-eligible |
| Over £10,000 | Eligible |
| Reassess | Category |
| New duties | May apply |
Already Member
| If Already | Joined |
|---|---|
| Continue membership | Normally |
| Contributions | May change |
| Employer duty | May now apply |
Practical Considerations
Small Amounts
| Issue | Reality |
|---|---|
| Very low earnings | Small contributions |
| Pension pot | Grows slowly |
| But tax relief | Still applies |
| Still worthwhile | For some |
Administration
| For Employers | Consider |
|---|---|
| Same scheme | All categories |
| Process in place | For requests |
| Payroll setup | For deductions |
Summary
Key Points
| Element | Detail |
|---|---|
| Earnings | Under £6,240 |
| Can join | Yes |
| Employer contributes | Not required |
| Tax relief | Worker gets |
vs Other Categories
| Category | Employer Contributes |
|---|---|
| Eligible | Must (3%+) |
| Non-eligible | If opt in |
| Entitled | Not required |
Related answers
Auto-Enrolment Overview
What is workplace pension auto-enrolment? Understand the UK's automatic enrolment system and employer duties for pension contributions.
Eligible Jobholders for Auto-Enrolment
Who is an eligible jobholder for pension auto-enrolment? Understand the criteria for automatic pension enrolment.
Non-Eligible Jobholders
What is a non-eligible jobholder? Understand workers who can opt in to pension auto-enrolment and their rights.
Frequently Asked Questions
- Who is an entitled worker?
- An entitled worker is someone aged 16-74 earning under £6,240/year (the lower qualifying earnings threshold). They can ask to join the pension scheme, but the employer isn't required to make contributions for them.
- Does the employer have to contribute for entitled workers?
- No. Unlike eligible and non-eligible jobholders, employers don't have to make contributions for entitled workers who join the scheme. However, employers can choose to contribute voluntarily.
- Why would an entitled worker join without employer contributions?
- They still get tax relief on their own contributions, building retirement savings. Some employers choose to contribute anyway as a benefit. And it establishes a pension pot for when earnings may increase in future.