This month marks a deadline that a lot of small business owners did not see coming. As of 1st July 2026, ‘Small’ employers in Gibraltar, businesses with between 15 and 50 staff, are now legally required to be compliant with the Private Sector Pensions Act. Micro employers, those with under 15 staff, follow next year.

With that in mind, we thought it would be useful to step back and explain, in plain English, what the Act requires, who it applies to, and what businesses should do if they have not yet taken action.

So, what is the Private Sector Pensions Act? 

It is Gibraltar’s answer to the UK’s auto-enrolment regime. In simple terms, it requires every private sector employer, regardless of size, to give eligible staff access to a workplace pension scheme, on top of the State Pension they are already entitled to.

The legislation itself is not new. It was passed in 2019 and has been introduced in phases, beginning with Gibraltar’s largest employers and gradually extending to smaller businesses.

As each employer category approaches its implementation date, the Gibraltar Financial Services Commission (GFSC) writes directly to affected businesses. If you’ve recently received a letter from the GFSC about workplace pensions, this may be why.

Does this actually apply to my business? 

Almost certainly, yes.

The Act applies in phases based on employer size:

Employer size	Compliance date
Enterprise (251+ employees)	1 August 2021
Large (101-250 employees)	1 July 2022
Medium (51-100 employees)	1 July 2025
Small (15-50 employees)	1 July 2026
Micro (14 employees or fewer)	1 July 2027

It is worth knowing that the GFSC has given Small employers a grace period, a 90-day window from 1 July 2026, so up until 30 September 2026, to become compliant and register their scheme with the Pensions Commissioner. That is welcome breathing room, but it is not indefinite, and the work of choosing a scheme and getting it set up still takes time.

Which employees does it cover? 

An employee becomes eligible once they:

• are aged 15 or over;
• have completed 12 months of continuous employment with you;
• earn £10,000 or more per year from that employment; and
• are not already enrolled in another GFSC-approved pension scheme.

What does an employer actually have to do? 

Two things, broadly. First, set up or confirm access to a pension scheme that meets the Act’s requirements, either an occupational scheme registered with the Gibraltar Financial Services Commission (GFSC), or a personal pension scheme run by a GFSC-permitted provider. 

Second, register as an employer with the GFSC, which acts as Pensions Commissioner under the Act, and enrol your eligible staff.

Something to note is that eligible employees do have the right to opt out. However, this is not simply an informal agreement between employer and employee. There is a formal opt-out process that must be followed, and the GFSC must be notified accordingly.

What does it cost? 

The exact cost of implementing a workplace pension depends on the provider and type of scheme selected. However, employers should generally expect three cost areas.

1. Contributions.

Under the Act, employers and employees must each contribute a minimum of 2% of the employee’s gross earnings. Employers may choose to contribute more if they wish to align their benefits package with wider business or retention goals.

2. Implementation fee.

This is the one-off setup fee that covers the initial cost of establishing the scheme, onboarding members, configuring systems and ensuring compliance from day one. Different providers structure this differently.

3. Ongoing administration fees.

These are annual fees that typically cover scheme administration, Trustee obligations, record-keeping, member queries, reporting, and access to advisory services. Statutory fees payable to the GFSC, or fees relating to financial statements, are generally paid separately by the employer as disbursements.

What if my staff already have their own personal pensions? 

An employee having a personal pension plan does not satisfy your obligation as an employer. The Act requires you, specifically, to offer a compliant workplace scheme. If an existing arrangement genuinely meets the Act’s criteria, it may not need to change, but that needs proper review rather than assumption.

What happens if a business does not comply? 

The GFSC, as Pensions Commissioner, has oversight and enforcement powers, including the ability to fine employers found in breach. In practice, the most common issues are not deliberate avoidance, they are missed deadlines, employees who should have been enrolled but were not, or registration paperwork that never got filed. None of that is helped by leaving it late.

Key takeaway

If your business employs between 15 and 50 people, your compliance deadline has now passed and you should already be taking steps to ensure you meet your legal obligations by the end of the GFSC grade period (30 September 2026). 

If you employ fewer than 15 people, now is the ideal time to begin planning ahead of the 1 July 2027 deadline. Starting early gives you more time to compare providers, understand the costs involved and implement a scheme without unnecessary pressure.

About the author

Phoebe Kelly works in marketing and communications at Sovereign Group, a Gibraltar-headquartered financial services firm specialising in tax, pensions, wealth, and trust and company services. Sovereign can help employers set up, manage and communicate workplace pension schemes, making it easier for businesses to support their employees’ long-term financial wellbeing.

Find out more at https://www.sovereigngroup.com

Resources

• Private Sector Pensions Act 2019: https://www.gibraltarlaws.gov.gi/legislations/private-sector-pensions-act-2019-4689 
• GFSC FAQs for Employers: https://www.fsc.gi/FAQ-EmployersandPensionSchemeAdministrators 
• GFSC FAQs for Employees: https://www.fsc.gi/FAQs-Employees
• Employee opt-out forms (available in English, Spanish, Portuguese and Arabic): https://www.fsc.gi/Forms/Downloads