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Glossary · Pensions

Auto-enrolment

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Definition: The rule requiring UK employers to automatically enrol qualifying workers aged 22 to State Pension age, earning over £10,000, into a workplace pension.

Minimum total contributions are 8% of qualifying earnings (£6,240–£50,270 band): at least 3% from the employer, with the rest from the worker plus a 1% basic-rate tax relief top-up. Workers can opt out, but are re-enrolled every three years.

Primary source: thepensionsregulator.gov.uk

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