Workforce Assessment for Auto-Enrolment
How do you assess workers for pension auto-enrolment? Understand the process of categorising your workforce.
Last updated: 30 January 2025
Workforce assessment categorises workers for auto-enrolment purposes.
Why Assessment Matters
Legal Requirement
| Purpose | Reason |
|---|---|
| Identify duties | For each worker |
| Determine category | Who gets what |
| Compliance | Meet obligations |
| Correct contributions | Apply right rules |
Three Categories
| Category | Treatment |
|---|---|
| Eligible jobholder | Must auto-enrol |
| Non-eligible jobholder | Can opt in |
| Entitled worker | Can join |
The Assessment Process
Step 1: Check Age
| Age Range | Next Step |
|---|---|
| Under 16 | No duties |
| 16-21 | Check earnings |
| 22 to SPA | Check earnings |
| SPA to 74 | Check earnings |
| Over 74 | No duties |
Step 2: Check Earnings
| If Age 22-SPA | And Earnings | Category |
|---|---|---|
| 22-SPA | Over £10,000 | Eligible |
| 22-SPA | £6,240-£10,000 | Non-eligible |
| 22-SPA | Under £6,240 | Entitled |
| If Age 16-21 or SPA-74 | And Earnings | Category |
|---|---|---|
| 16-21 or SPA-74 | Over £6,240 | Non-eligible |
| 16-21 or SPA-74 | Under £6,240 | Entitled |
Step 3: Check UK Working
| Works In | Result |
|---|---|
| UK | Proceed with category |
| Ordinarily UK | Proceed |
| Overseas permanently | Different rules |
When to Assess
Key Trigger Points
| Event | Action |
|---|---|
| New starter | Assess immediately |
| Pay reference period start | Check earnings |
| Birthday (22 or SPA) | Reassess |
| Earnings change | Reassess |
| Role change | Reassess |
Pay Reference Period
| Definition | Detail |
|---|---|
| Period for pay | Weekly, monthly, etc |
| Each period | Assess at start |
| Based on earnings | Expected in period |
Earnings Assessment
What Counts
| Include | In Earnings |
|---|---|
| Basic salary | Yes |
| Wages | Yes |
| Commission | Yes |
| Bonus | Yes |
| Overtime | Yes |
| Statutory pay | Yes |
What Doesn't Count
| Exclude | From Calculation |
|---|---|
| Benefits in kind | Not cash |
| Expense payments | Not earnings |
| Pension contributions | Employer's |
| Redundancy pay | Not regular |
Calculating Annual Equivalent
| If Paid | Multiply By |
|---|---|
| Weekly | 52 |
| Fortnightly | 26 |
| Monthly | 12 |
| Four-weekly | 13 |
Assessment Examples
Example 1: Standard Full-Time
| Detail | Value |
|---|---|
| Age | 35 |
| Salary | £30,000 |
| Works in | UK |
| Category | Eligible jobholder |
| Action | Auto-enrol |
Example 2: Part-Time Under Threshold
| Detail | Value |
|---|---|
| Age | 28 |
| Salary | £8,000 |
| Works in | UK |
| Category | Non-eligible jobholder |
| Action | Write to, may opt in |
Example 3: Young Worker
| Detail | Value |
|---|---|
| Age | 19 |
| Salary | £22,000 |
| Works in | UK |
| Category | Non-eligible (under 22) |
| Action | Write to, may opt in |
Example 4: Low Earner
| Detail | Value |
|---|---|
| Age | 45 |
| Salary | £5,000 |
| Works in | UK |
| Category | Entitled worker |
| Action | Can request to join |
Variable Earnings
Fluctuating Pay
| Situation | Approach |
|---|---|
| Varies monthly | Assess each period |
| May change category | Possibly |
| Track changes | Monitor |
How to Handle
| Period | Action |
|---|---|
| Each pay period | Assess at start |
| If becomes eligible | Enrol |
| Once enrolled | Usually continue |
Example
| Month | Earnings | Category |
|---|---|---|
| Jan | £700 | Non-eligible |
| Feb | £900 | Eligible |
| Mar | £600 | Still enrolled |
Special Cases
Directors
| Director Type | Treatment |
|---|---|
| With contract | Normal assessment |
| Without contract | Not a worker |
| Fee only | Check arrangements |
Agency Workers
| Rule | Application |
|---|---|
| Agency assesses | Their workers |
| Hirer not responsible | For assessment |
| Each employment | Separate |
Multiple Jobs
| If Multiple | Assessment |
|---|---|
| Each job | Separately |
| Each employer | Their own duties |
| Not combined | Earnings |
Record Keeping
What to Document
| Record | Purpose |
|---|---|
| Assessment date | When done |
| Category assigned | Result |
| Basis | Earnings, age |
| Any changes | Updates |
How Long
| Duration | Period |
|---|---|
| 6 years | Minimum |
| Or employment | Duration |
| Evidence | Of compliance |
Using Software
Payroll Systems
| Feature | Benefit |
|---|---|
| Auto-assessment | Built in |
| Category assignment | Automated |
| Alerts | For changes |
| Reports | For compliance |
Manual Assessment
| If Manual | Use |
|---|---|
| Spreadsheet | Track workers |
| Checklist | For each assessment |
| Regular review | Check accuracy |
Common Mistakes
Errors to Avoid
| Mistake | Problem |
|---|---|
| Not assessing | Missing duties |
| Wrong earnings | Wrong category |
| Forgetting birthdays | Missed enrolment |
| Combining jobs | Incorrect approach |
Getting It Right
| Practice | Benefit |
|---|---|
| Assess all workers | Comprehensive |
| Document everything | Evidence |
| Use systems | Accuracy |
| Review regularly | Catch changes |
Summary
Assessment Checklist
| Check | Complete |
|---|---|
| Age verified | |
| Earnings calculated | |
| UK working confirmed | |
| Category assigned | |
| Action taken | |
| Records kept |
Categories Quick Reference
| Category | Age | Earnings | Employer Duty |
|---|---|---|---|
| Eligible | 22-SPA | Over £10,000 | Auto-enrol |
| Non-eligible | Various | £6,240+ | Opt-in available |
| Entitled | 16-74 | Under £6,240 | Allow access |
Related answers
Eligible Jobholders for Auto-Enrolment
Who is an eligible jobholder for pension auto-enrolment? Understand the criteria for automatic pension enrolment.
Entitled Workers
What is an entitled worker for pension auto-enrolment? Understand rights for low-earning workers to join workplace pensions.
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
- How often must I assess workers for auto-enrolment?
- You must assess workers at key points: when they start, at the beginning of each pay period, when they turn 22, and when their earnings change. New starters should be assessed immediately to determine their category.
- What are the three worker categories?
- Eligible jobholders (auto-enrol, employer contributes), non-eligible jobholders (can opt in, employer contributes if they do), and entitled workers (can join, no employer contribution required). Categories depend on age and earnings.
- Do I assess each job separately for workers with multiple roles?
- Yes. Each employment contract is assessed separately. Someone might be an eligible jobholder for one employer but an entitled worker for another, depending on their earnings with each employer.