Uber launches defined contribution scheme for UK drivers

Uber Technologies Inc., San Francisco, is launching a defined contribution scheme for its UK drivers on Friday following a UK Supreme Court ruling that drivers should be considered workers, not self-employed workers.

Under the ruling in March, Uber drivers can still choose when to work as well as earn wages from other jobs, but will be entitled to new benefits such as paid time off and a pension plan.

Uber’s retirement plan for 70,000 UK drivers will be the first arrangement for UK gig workers

A spokesperson for Uber has confirmed that NOW: Pensions, the £ 2.5bn ($ 3.4bn) multi-employer defined contribution plan, has been selected to manage the assets of the sponsored new arrangement. by the carpooling service.

As part of the deal, Uber will pay a contribution rate of 3%, while drivers will contribute 5% of their qualifying income if they earn above the minimum threshold of £ 120 and up to a maximum threshold of 967 £.

The employer and employee contribution rates are the minimum combined contribution rates that every employer must offer to UK employees under the country’s automatic enrollment program. Drivers will still be able to opt out.

Uber said it is also expanding its plan to other operators such as Bolt, Addison Lee and Ola so that drivers working on multiple online services can contribute to Uber’s plan to create a cross-industry pension plan. .

“We want to make sure that all eligible drivers can benefit from it, no matter who they earn with, which is why I am issuing an invitation today to work with operators such as Bolt, Addison Lee and Ola to create a intersectoral retirement, ”said Jamie Heywood. , regional general manager Northern and Eastern Europe of Uber, in a statement.

Stephen Timms, Member of Parliament and Chairman of the Select Committee on Work and Pensions, added in the press release: “I applaud this launch, which follows the recent court case. It expands company-backed retirement savings to a large new cohort of I also welcome Uber’s call for a cross-industry approach to retirement savings, ”added Mr. Timms.

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