As an umbrella company contractor, your employer’s contributions to your workplace pension will be deducted from your contracted rate, which is the total amount that the umbrella company receives from your end client or agency for the services you’ve provided.
Other employer’s expenses deducted at this stage include:
- Employer’s National Insurance contributions (NICs)
- The Apprenticeship Levy payment
- Your umbrella company’s margin
If enrolment is compulsory, you must enrol. And, since 2018, it’s been a legal requirement for all UK employers – including umbrella companies – to offer automatic enrolment onto a workplace pension scheme. However, enrolment is not automatic if your earnings amount to less than £10,000 per annum.
Once enrolled, though, you can opt-out or cease active membership. Your umbrella company must let you leave the workplace pension scheme you’re enrolled in if you request to do so and refund you any money you’ve paid in if you opt-out within the first 30 days.