The Gibraltar Private Sector Pensions Act 2019, like the UK’s ‘auto enrolment’ pensions regime, makes it compulsory for all employers in Gibraltar to provide access for all eligible employees to a pension scheme, in addition to the existing State Pension.
Auto enrolment is designed to ensure that more workers have easy access to a workplace pension scheme, enabling them to save towards their retirement and enjoy an income over and above the basic state pension.
If an employee chooses to join the pension scheme, the Act also makes it compulsory for both the employer and employee to contribute a minimum amount each week or month (depending on how the employee is paid) to the employee’s pension fund.
Gibraltar employees eligible for ‘auto enrolment’ must be over the age of 15, have worked for an employer for one year or more and have gross earnings from that employment of £10,000 or more per year.
Implementation of the ‘auto enrolment’ regime was deliberately phased to give smaller employers more time to adjust to the new requirements. The deadlines set for employer compliance under the phased implementation are as follows: