Non-Eligible Jobholders
What is a non-eligible jobholder? Understand workers who can opt in to pension auto-enrolment and their rights.
Last updated: 30 January 2025
Non-eligible jobholders have the right to opt into their workplace pension.
Definition
Who Qualifies
| Category | Criteria |
|---|---|
| Age 16-21 | Earning over £6,240 |
| Age SPA-74 | Earning over £6,240 |
| Age 22-SPA | Earning £6,240-£10,000 |
The Earnings Band
| Earnings | Non-Eligible If |
|---|---|
| Over £6,240 | And age criteria |
| Under £10,000 | If age 22-SPA |
| Any amount over £6,240 | If 16-21 or SPA-74 |
Compared to Other Categories
vs Eligible Jobholders
| Feature | Eligible | Non-Eligible |
|---|---|---|
| Auto-enrolled | Yes | No |
| Can opt in | N/A | Yes |
| Employer contribution | Required | If opt in |
| Communication | Required | Required |
vs Entitled Workers
| Feature | Non-Eligible | Entitled |
|---|---|---|
| Earnings | Over £6,240 | Under £6,240 |
| Employer contribution | If opt in | Not required |
| Can join | Yes | Yes |
| Treatment | Better | Basic |
Opt-In Rights
The Right
| Feature | Detail |
|---|---|
| Can opt in | To pension |
| Employer must enrol | If requested |
| Employer contributes | At least 3% |
| Same treatment | As eligible |
How to Opt In
| Step | Action |
|---|---|
| Worker decides | Want to join |
| Gives notice | To employer |
| Employer enrols | Within deadline |
| Contributions start | From opt-in date |
Opt-In Notice
| Requirement | Detail |
|---|---|
| In writing | Required |
| Or opt-in form | Provided by employer |
| Clear intention | To join pension |
Employer Duties
Communication
| Must Tell Them | About |
|---|---|
| Opt-in right | Can join |
| Employer contribution | If they opt in |
| How to opt in | Process |
| Scheme details | Information |
If They Opt In
| Duty | Requirement |
|---|---|
| Enrol promptly | Within 1 month |
| Contribute | Minimum 3% |
| Deduct | Employee contribution |
| Ongoing | Same as eligible |
Timeline
| After Opt-In Notice | Deadline |
|---|---|
| Enrol by | 1 month |
| Contributions from | Opt-in date |
| Or agreed date | If different |
Contribution Rates
Minimum Requirements
| Who | Rate |
|---|---|
| Employer | 3% |
| Employee | 5% |
| Total | 8% |
On What
| Earnings | Basis |
|---|---|
| Qualifying earnings | £6,240 to £50,270 |
| Same as | Eligible jobholders |
| Or alternative | If certified |
Communication Requirements
Employer Must Write
| Letter Contains | Information |
|---|---|
| Right to opt in | Explanation |
| What happens | If they do |
| How to opt in | Process |
| Scheme details | Provider info |
When to Send
| Trigger | Timing |
|---|---|
| Become non-eligible | Promptly |
| New starter assessed | After assessment |
| Within | 6 weeks usually |
Common Scenarios
Scenario 1: Young Worker
| Details | Position |
|---|---|
| Age 19 | Under 22 |
| Earning £15,000 | Over £6,240 |
| Category | Non-eligible jobholder |
| Action | Write to inform |
| If opt in | Must enrol + contribute |
Scenario 2: Over State Pension Age
| Details | Position |
|---|---|
| Age 67 | Over SPA |
| Earning £20,000 | Over £6,240 |
| Category | Non-eligible jobholder |
| Action | Write to inform |
| If opt in | Must enrol + contribute |
Scenario 3: Low Earner
| Details | Position |
|---|---|
| Age 30 | Eligible age |
| Earning £8,000 | £6,240-£10,000 |
| Category | Non-eligible jobholder |
| Action | Write to inform |
| If opt in | Must enrol + contribute |
Benefits of Opting In
For Worker
| Benefit | Value |
|---|---|
| Employer contribution | Free money |
| Tax relief | On their contribution |
| Retirement savings | Building pot |
| Portable | Take to next job |
Why They Might Not
| Reason | Consideration |
|---|---|
| Low income | Need money now |
| Other savings | Already saving |
| Personal choice | Their decision |
Employer Considerations
Cannot Discourage
| Prohibited | Why |
|---|---|
| Encouraging opt-out | Inducement |
| Discouraging opt-in | Unfair |
| Making difficult | Process |
| Treating worse | For opting in |
Can Encourage
| Allowed | Approach |
|---|---|
| Explain benefits | Neutral |
| Provide information | Helpful |
| Offer higher contribution | As incentive |
Record Keeping
What to Keep
| Record | Purpose |
|---|---|
| Worker category | Assessment |
| Letters sent | Communication |
| Opt-in notices | If received |
| Enrolment date | If opted in |
How Long
| Duration | Period |
|---|---|
| 6 years | Generally |
| Employment records | Related |
| Evidence | Of compliance |
If Status Changes
Becoming Eligible
| If | Action |
|---|---|
| Turn 22 | Reassess |
| Earnings increase | Reassess |
| Become eligible | Auto-enrol |
Already Opted In
| If Already | Position |
|---|---|
| Opted in | Already member |
| No change | To status |
| Contributions | Continue |
Summary
Key Points
| Element | Detail |
|---|---|
| Right to opt in | Yes |
| Employer must enrol | If they opt in |
| Employer contributes | Same as eligible |
| Communication | Required |
Categories
| Worker | Earnings | Age |
|---|---|---|
| Non-eligible | £6,240+ | 16-21 |
| Non-eligible | £6,240+ | SPA-74 |
| Non-eligible | £6,240-£10,000 | 22-SPA |
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.
Pension Opt-In
How can workers opt into workplace pensions? Understand opt-in rights for non-eligible jobholders and the employer's duties.
Frequently Asked Questions
- Who is a non-eligible jobholder?
- Workers aged 16-21 or State Pension age to 74, earning over £6,240/year but not meeting eligible jobholder criteria. They're not automatically enrolled but can opt in and receive employer contributions if they do.
- What happens if a non-eligible jobholder opts in?
- If they opt in, the employer must enrol them and make minimum contributions (3%) just like for eligible jobholders. The employee also contributes (5%). They're treated the same as auto-enrolled workers.
- Do I have to tell non-eligible jobholders about their rights?
- Yes. Employers must write to non-eligible jobholders explaining they have the right to opt in and receive employer contributions. This communication is a legal requirement.