An employee has all the rights to have his future secured and this is same for an employer as well. An employer is always on a safer side and an employee is not. There are various pension schemes available for employees for their secured future. It is available in almost every country. These schemes are also known as auto-enrolment for employers. There are various companies who are providing these services to employers.
What is auto-enrolment for employers?
In this scheme a company or an employer register himself with other company who is providing pension facility. An employer can register themselves directly with the government as these schemes are made mandatory by the government. In many countries, it is still not mandatory but in various countries which are well developed, it is mandatory.
In this scheme, an employee pays a part of his regular income on a monthly basis to the government to fund him later on. This is an ordinary case in countries running this scheme. There are few countries where employer also pays a part of employee’s salary on a monthly basis to the government. This helps an employee to receive more benefits after leaving the job.
Problems faced in getting pension
There are lots of schemes running by the government but usability is quite difficult. An individual doesn’t continue the same job for life long and changes his job. The problem faced by these employees is that how to gather all the information about his past jobs with legitimate proof. Government works according to proper norms. It results in a big loss for an employee. Until the time his pension is not get approved properly then he will be in a big loss. This loss will be as big as his salary drawn by him. As much as the huge salary an employee gets he will get his pension accordingly and it will be huge for high salaried employees.
Companies with solution
For every problem, there is a solution and for the problem faced by employees in getting the pension on time, there are companies who are coming with a solution for them. These companies are helping both to the employer and to an employee. First of all these companies are registering employers to get the benefit of auto-enrolment for employers. Via this, it becomes quite easy for an employer to serve better to their employees. As well as it becomes easy for an employee to get their pension with ease and on time.
Since it is mandatory for an employer to register them with auto renewal schemes then it is a pain which is taken by the employer and not by employee anymore. This step which is taken by the government of many countries is fruitful for the employee as well as for employer. It is beneficial for an employee but how is it beneficial for the employer is a question. It is beneficial for the employer because if he will register on time for funding its employees then there is no need to pay heavy penalty amount. Since it is made possible by the government of few countries, this step should be followed by other countries as well.