Auto-Enrolment (Workplace Pensions)
Auto-enrolment is the legal requirement for employers to automatically enrol eligible workers into a qualifying workplace pension scheme and make minimum contributions. Eligible workers are those aged 22 to State Pension age, earning above the earnings trigger (£10,000 per year), and working in the UK. The minimum total contribution is 8% of qualifying earnings (including at least 3% from the employer). Workers may opt out but must be re-enrolled every three years.
For 2025/26, the auto-enrolment earnings trigger remains £10,000 per year; only earnings between the lower qualifying earnings band (£6,240) and the upper band (£50,270) count as qualifying earnings for contribution purposes. The total minimum contribution is 8% of qualifying earnings, with at least 3% from the employer and the remainder from the worker and tax relief. Workers can opt out within one month of enrolment and receive a refund of contributions, but must be re-enrolled every three years. The Pensions Regulator (TPR) enforces compliance; employers who fail to enrol workers or make contributions face escalating fixed and daily penalties. Under the Pensions (Extension of Automatic Enrolment) Act 2023, the Government plans to lower the age threshold to 18 and remove the lower earnings band — the implementation date is yet to be confirmed.