What is pension auto-enrolment?
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In short: A legal requirement for UK employers to enrol eligible staff into a workplace pension and pay contributions. For 2026/27, the minimum total contribution is 8% of qualifying earnings, with at least 3% from the employer.
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Reviewed by Kaiser Khan
Automatic enrolment means employers must put eligible workers aged 22 to State Pension age who earn above the earnings trigger — £10,000 a year in 2026/27 — into a qualifying workplace pension scheme unless the worker opts out. Eligible jobholders are enrolled automatically; lower earners may join voluntarily.
Minimum contributions are calculated on qualifying earnings between £6,240 and £50,270 for 2026/27. The legal minimum is 8% of that band in total, with the employer paying at least 3% and the employee providing the rest (including tax relief). Many employers match higher employee contributions as a benefit.
You can opt out within one month and receive a refund of contributions, but opting out means missing employer contributions and tax relief. The pension pot is yours — it moves with you when you change jobs. From age 55 (57 from 2028) you can access benefits under normal pension freedom rules, though early access reduces retirement income.
Primary source: gov.uk/workplace-pensions
Part of our Pensions & retirement
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