The Gibraltar Private Sector Pensions Act 2019: What do smaller employers need to know?

January 31, 2024

Regardless of the size of your business, the Private Sector Pensions Act 2019 (the Act) is unlikely to have escaped your radar thanks to numerous news articles, social posts and events regarding the concept of pension auto enrolment of over recent months.

As a Gibraltar employer with 100 employees or less, you may not yet have given this your full attention. Here we address some key points and burning questions for micro, small or medium sized business in Gibraltar and summarise why the time to act is now. 

If you would like to know more about what auto enrolment means to you, the team at Boal & Co Gibraltar will be happy to chat to you. 

What is the Private Pensions Act?

The Act places an obligation on all employers in Gibraltar to establish and maintain a pension plan for all qualifying employees.

What is a ‘qualifying employee’?

Your qualifying employees are any employees that are over 15 years of age and:

  • have over 12 months’ continuous employment with you
  • earn more than £10,000 per annum

When does the Act come into place?

Implementation of the Act is phased between 2021 and 2027 and applies dependent on the number of employees within a company, as follows:

Size of Employer

Number of Employees

Deadline for Implementation

Enterprise Employer

251 or more

On or before 1 July 2021


101 to 250

On or before 1 July 2022


51 to 100

On or before 1 July 2025


15 to 50

On or before 1 July 2026


14 or less

On or before 1 July 2027

Is there a minimum contribution requirement?

The Act states that the contribution must be an aggregate of at least 4% per annum of the employee’s earnings, (a minimum of 2% being from the employer) although this can be higher.

Will a cross frontier worker be able to participate and contribute into these local schemes?

Yes - they are entitled to participate as long as they are employed in Gibraltar, regardless of their place of residence. (Spanish residents may be subject to Spanish taxes on contributions made into a personal pension as opposed to a company scheme).

My company is a ‘micro/small/medium’ employer - does the Act not apply to me yet?

Technically you have until the deadlines specified above to implement the Act. However, while you may consider the 2025 deadline to be a long way off, it is important to act sooner rather than later.

Providing a staff pension plan will help you to attract and retain talent, enhance employee morale and help to foster a sense of long-term security for your team.

How do I set up a pension scheme for my employees?

Setting up a pension scheme doesn’t need to be daunting, admin intensive or costly. Find a provider that will discuss the options available, take you through the process step-by-step, support with the administration, liaise with authorities on your behalf (where required) and help you to explain and roll out the plan to your employees.

What does Boal & Co offer to Gibraltar Employers?

We offer various specialised options which we have created specifically for Gibraltar employers. Our multi-employer pension scheme is a flexible and cost-effective option for Gibraltar employers who wish to set up a company-based scheme but don’t wish to build their own formal occupational scheme (with the potential added costs involved).

Alternatively, employers may choose to contribute to an employee’s own personal pension scheme. The best option for you will depend on your preferences as an employer, however it is our understanding that contributing to a company scheme (such as our multi-employer scheme) is the best option for Cross Frontier workers.

Our personalised approach, in-depth knowledge of Gibraltar’s pension landscape and commitment to compliance provides Gibraltar employers with confidence in the effectiveness and suitability of our pension schemes.

Why should employers use Boal & Co?

Boal specialises solely in pensions, setting us apart from our competitors. We have been designing and setting up pensions, tailored to the specific needs of companies and individuals, for more than 25 years. Our expertise in crafting tailored solutions, and cost-effective plans has made us one of the leading pension providers internationally. We prioritise seamless implementation, regulatory adherence and ongoing support, ensuring our innovative features, competitive fees, excellent customer service and expertise in the field, distinguishes our services.

How do I get started?

Contact me for a no obligation chat and I will talk you through your options. If you decide to go ahead, our team will make the process as simple as possible for you.

Learm more about Gateway for Gibraltar employers

By Erica Power

Head of Pensions Business Development, Gibraltar