Ensuring Financial Security for Gibraltar’s Workforce

The Gibraltar Private Sector Pensions Act 2019 is a game-changer, safeguarding the financial future of our community. Just like the ‘auto enrolment’ pensions in the UK, this Act makes it mandatory for all Gibraltar employers to provide eligible employees with access to a pension scheme, supplementing the State pension.

Eligible employees must be aged 15 and above, with a year or more of service and annual gross earnings of £10,000 or more, can opt into the scheme. Both employers and employees contribute a minimum amount weekly or monthly to the pension fund.

The ‘auto enrolment’ rollout has been phased to accommodate smaller employers, and started on 1 July 2021. Next year, it will be the turn of ‘medium sized’ employers (those with 51 – 100 employees) to provide a pension plan to any employee who requests it. It’s a step towards a secure retirement for all. The process will conclude on 1 July 2027, when ‘Micro’ employers (those with 14 or fewer employees) will be brought into scope.

In today’s workforce, retirement benefits are seen as an integral part of the compensation package. The era of auto enrolment is transforming what was once a best practice into a must-do. It’s time for private sector employers to step up, taking charge of their employees’ financial well-being.

Smart businesses planning for the long run understand that investing in retirement provisions isn’t just a legal obligation; it’s a strategic move. Those who plan effectively now are poised to come out on top in the grand scheme of things.

Sovereign Pension Services (Gibraltar) is the rock’s largest pension provider and is here to help businesses, big or small, navigate these changes seamlessly. We design and establish Occupational Pension Schemes, ensuring compliance and minimal disruption. Your employees’ financial well-being is our priority.