How do pensions work on an interim contract?

Being an interim comes hand in hand with a lot of perks, including increased flexibility, freedom to travel between contracts – the list goes on. But are you still entitled to the same employee benefits as full-timers? In this article, we discuss how pensions work for those on an interim contract. 

Am I entitled to a pension on a part-time contract? 

Yes, you are still eligible for a state pension as a part-time worker if you make more than £112 a week. Otherwise, you can fund your pension independently. 

If you work directly for your employer…

If you work directly for your employer (rather than through an umbrella) then you will be automatically enrolled on the pension scheme, just as you would as a full time employer. 

If you work through an umbrella…

Umbrella contractors can choose whether they want to be enrolled onto the provider’s pension scheme. This is one of the benefits of working through an umbrella, as without one you would have to manage your pension yourself. 

If you’re self-employed…

As a self-employed worker, you have the option to contribute into a personal pension. It is up to you whether you want to pay into this on a regular basis at the same rate, or as and when.In most cases, you will get tax relief on these contributions. Find out more about personal pensions here. 

For further clarity on how your pension works, we recommend getting in touch with the Department for Work and Pensions or your company’s HR department. 

Want to talk to a member of our team? Get in touch now via email at [email protected] or give us a call on 0203 929 4000.