Workplace pension auto-enrolment explained
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Quick answer: Employers must automatically enrol eligible staff into a qualifying workplace pension and pay minimum contributions — you can opt out, but staying enrolled usually builds retirement savings with employer top-ups.
Since 2012, UK employers have been required to enrol most workers into a workplace pension scheme. Minimum employer and employee contributions apply, with tax relief on your share. This guide explains who is covered, how much goes in, and what happens if you opt out.
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Read the full pensions & retirement guide →Primary source: www.gov.uk/workplace-pensions
Who must be enrolled
Your employer must automatically enrol you if you work in the UK, are aged between 22 and state pension age, and earn more than £10,000 in a pay period. This assessment happens each pay period, so a seasonal worker crossing the threshold may be enrolled partway through the year.
Workers outside those ages or below the earnings trigger can ask to join, and employers must contribute if you earn above £6,240 a year. This lower threshold helps part-time and younger workers build pension savings even when they are not auto-enrolled.
How contributions work
Qualifying earnings for 2026/27 sit between £6,240 and £50,270 per year. Contributions are calculated on that band, not necessarily your full salary.
The legal minimum is 8% of qualifying earnings: your employer pays at least 3% and you pay at least 5%, which includes basic-rate tax relief on your contribution. Many employers pay more than the minimum.
Opting out and re-enrolment
You can opt out during the one-month window after enrolment and have contributions refunded. If you opt out later, money already paid in usually stays in the pension.
Employers must re-enrol eligible workers who opted out every three years. You can opt out again, but repeated opt-outs mean missing matched employer money.
Common questions
Can I leave the pension scheme permanently?
You can opt out, but your employer must re-enrol you every three years if you remain eligible. Permanent exclusion is not available for eligible workers.
Does auto-enrolment apply to self-employed workers?
No. Auto-enrolment is for employees. Self-employed people must arrange their own pension, such as a personal pension or SIPP.
What if I have multiple jobs?
Each employer assesses you separately. You could be enrolled in more than one scheme if you meet the earnings test in each job.