The vast majority of hairdressers and barbers are completely unprepared for the arrival of pensions auto-enrolment within the industry in the next two after the NHF survey with members.

  • Auto-enrolment is the change to pension provision that means employers have a statutory duty automatically to enrol eligible workers into a work-based pension and make an employer contribution towards it.
  • Eligible workers are those aged over 22 and under state pension age, who earn more than £9,940 per year and ordinarily work in the UK. Employers have a duty to assess all their workers for eligibility.
  • An employer must enrol and pay minimum contributions for any workers aged 16-74 who earn more than £5,668 annually and ask to be enrolled.
  • Any workers aged 16-74 who earn less than £5,668 and who ask to be enrolled must be so, but there is no requirement to pay contributions for them.

NHF members are being urged to start planning now for one of the biggest employment changes to hit the industry in a generation.

The NHF have launched an NHF pension for members specifically to help salons meet their legal responsibilities under the new regime. For more information about this membership benefit click here.

The Pensions Regulator published “FAQs” for small businesses on how to prepare for the arrival of auto-enrolment. The Pensions Regulator’s FAQs can be found on its website, www.thepensionsregulator.gov.uk as well as on the Guide to Pensions Auto-Enrolment produced by the NHF.

Under auto-enrolment, employers of all sizes have a new statutory duty automatically to enrol eligible workers into a work-based pension and make an employer contribution towards it.

Employers that fail to do so can risk being fined as much as £50,000 so don't be the one to be caught out.