Nannies and Automatic Enrolment

What is automatic enrolment?

Automatic enrolment, also known as auto enrolment and AE pensions, is a new initiative that has been introduced to help people save for retirement.

It means that all employers now have to provide a workplace pension for their employees, automatically enrol the workers that qualify and contribute to their pension if they do.

The new legislation has been introduced gradually, with the biggest employers going first.

Does it apply to nanny employers?

Yes, nanny employers must make sure they provide a pension in the same way as any other employer.

How much will it cost?

If your nanny qualifies for automatic enrolment, you must contribute a percentage of her gross salary to the pension. This percentage will be gradually increasing:



Employer contribution

Nanny contribution

Government contribution


Present until 30th September 2017





1 October 2017 to 30 September 2018





1 October 2018 onwards






Remember though – if you agree a net wage with your nanny then you will be liable to pay her pension contribution too!

When will automatic enrolment apply to nanny employers?

Nanny employers will be affected in June 2015 at the earliest, and if you haven’t started employing a nanny yet then the earliest you will be affected is 2017.

What do nanny employers need to do about automatic enrolment?

If you subscribe to Nannytax then you will have the option to sign up to our exclusive Nannyenrol service. This takes away the burden of communicating with your pension provider, working out if your nanny qualifies for a pension and registering with the Pensions Regulator.

All you have to do is set up a workplace pension scheme and then you can let Nannyenrol at Nannytax take care of the rest.

Request more information

For more information on how Nannytax can help you setup a nanny PAYE scheme please click here or get going straight away and setup your nanny payroll now.

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