If your business in Gibraltar has between 51 and 100 employees, the clock is ticking. From 1 July 2025, you’re legally required to offer a workplace pension under the Private Sector Pensions Act 2019.
With only three months until the deadline, and a turnaround time to establish a plan of two to three months, the time to act is now!
A quick refresher
Gibraltar’s mandatory workplace pensions regime, often referred to as ‘auto enrolment’, has been phased in gradually since 2021. The goal is simple: to increase financial security for all workers in Gibraltar, by ensuring they have access to a workplace pension and will be financially protected in their later years.
Employers are required to automatically enrol employees who:
- Are over 15 years of age
- Have worked for them for more than one year
- Earn more than £10,000 per year
Once enrolled, both employer and employee must contribute a minimum of 2% of earnings into the employee’s pension scheme.
What happens on 1 July?
From this date, all ‘Medium’ employers (defined as those with 51–100 employees) must be compliant. If you fall into this bracket, you must have a qualifying pension scheme in place and be ready to enrol eligible employees.
Failure to comply may result in penalties, but more than that, it’s a missed opportunity to offer a valuable benefit to your team. Pensions are increasingly seen as a key part of a competitive employee benefits package, helping businesses to attract and retain top talent in a tight labour market.
Why now?
We’re already seeing proactive employers getting ahead of the deadline to avoid a last-minute rush and to ensure they have time to properly plan, communicate and implement their schemes. Delays in setup could lead to payroll complications, administrative strain, or even non-compliance.
How Sovereign can help
Sovereign Pension Services (Gibraltar) Ltd is working closely with local businesses to ensure smooth and compliant implementation. We offer fully compliant Occupational Pension Schemes that meet all the requirements of the Act, and we can also handle the day-to-day administration, so you don’t have to.
Our team has already helped many Gibraltar employers across all size categories, from the earliest adopters to those yet to be brought into scope. Whether you’re a ‘Medium’ employer preparing for the July deadline or a smaller company thinking ahead to future phases, we’re here to support you at every stage.
To find out how we can help, contact Darren Whitley on +350 200 76173 or email dwhitley@SovereignGroup.com.
