A workplace pension is a pension your employer arranges and pays into, and in the UK every employer must offer one. As of October 2026, staff aged 22 to State Pension age who earn at least £10,000 a year and usually work in the UK must be automatically enrolled, and the legal minimum going in is 8% of qualifying earnings, with at least 3% from the employer.
It's called automatic enrolment because the employee doesn't have to ask. Here's who's in, how the contributions are worked out, what employers must do and when, and how opting out works for staff.
Who must be automatically enrolled
| Test | Rule |
|---|---|
| Worker status | Classed as a worker |
| Age | Between 22 and State Pension age |
| Earnings | At least £10,000 a year |
| Where they work | Usually work in the UK, including people based here who travel abroad for work |
Staff outside those rules can usually still ask to join, and GOV.UK says the employer can't refuse. If they earn £520 a month (£120 a week, or £480 over 4 weeks) or less, the employer doesn't have to contribute for them, but above that they must pay the minimum.
There are exceptions. An employer usually doesn't have to enrol someone who's already given or received notice to leave, who has evidence of lifetime allowance protection, or who's a director without an employment contract in a company that employs at least one other person.
How much goes in
| Who pays | Minimum share of qualifying earnings |
|---|---|
| Employer | 3% |
| Employee | 5% |
| Total minimum | 8% |
In most schemes, qualifying earnings are an employee's total earnings between £6,240 and £50,270 a year before tax. That band includes salary, bonuses, commission, overtime and statutory sick, maternity, paternity, adoption, shared parental, bereavement and neonatal care pay. Schemes can set higher contributions, and some let the employer pay more so the employee pays less, as long as the 8% total is met.
GOV.UK gives a simple example of a payday in a defined contribution scheme: the employee puts in £40, the employer £30, and tax relief adds £10, so £80 goes into the pension.
What employers must do, step by step
- Know your duties start date. GOV.UK says it's the day your first member of staff starts working for you.
- Set up a qualifying scheme, or check with your provider that an existing scheme meets the rules. The Pensions Regulator has a tool that tells you what to do and when.
- Enrol eligible staff and write to them. The letter must say when they were added, who runs the scheme, what each side pays, how to leave and how tax relief works.
- You can delay enrolment by up to 3 months, but you must tell staff in writing and let them join in the meantime if they ask.
- Pay contributions by the 22nd of the next month (the 19th if you pay by cheque), each time you run payroll.
- Watch for staff who become eligible through age or pay. You must enrol them and write to them within 6 weeks.
- Keep records: enrolled staff, when contributions were paid, every request to join or leave, and your pension scheme reference. Keep them for 6 years, or 4 years for opt-out requests.
If you're choosing how to run payroll, this comparison of UK payroll software and these free payroll tools are a sensible place to start, since enrolment, letters and contributions all run from payroll.
Opting out, opting back in and re-enrolment
- Staff can opt out by contacting the pension provider. If they do it within a month of being added, they get back what they've paid in.
- After that month, their payments usually stay in the pension until they retire.
- Staff can opt back in at any time by writing to the employer, although the employer doesn't have to accept them if they've opted in and out in the past 12 months.
- Every 3 years, employers must re-enrol staff who left more than 12 months before the re-enrolment date, write to them within 6 weeks, and complete a re-declaration of compliance, even if nobody was re-enrolled.
Employers also can't encourage or force anyone to opt out, or treat them unfairly for being in the scheme.
Net pay vs relief at source
This is the detail that confuses payslips. Under net pay, the contribution comes out before tax, so tax relief is built in. Under relief at source, it comes out after tax and the provider adds basic rate relief to the pot, so the payslip shows only the employee's own contribution. GOV.UK notes that under net pay, someone earning below the tax threshold gets no tax relief, while relief at source still adds a payment for non-taxpayers. Higher and additional rate taxpayers under relief at source may be able to claim more back.
The verdict
Auto-enrolment is one of those jobs that's simple once it's set up and painful if it isn't. If you employ anyone in the UK, the duty starts with your very first employee, so don't wait until you have a team. Choose a scheme, let your payroll software do the enrolment and the letters, pay by the 22nd, and put the 3-year re-enrolment date in your calendar now. And if you're an employee wondering whether to opt out, remember that leaving within the first month gets your contributions back, but it also means giving up your employer's 3% and the tax relief.
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Frequently asked questions
Who has to be enrolled in a workplace pension?
As of October 2026, workers aged between 22 and State Pension age who earn at least £10,000 a year and usually work in the UK.
How much do employers pay into a workplace pension?
At least 3% of qualifying earnings. With the employee's 5%, the total minimum is 8%.
What are qualifying earnings for a workplace pension?
In most schemes, total earnings between £6,240 and £50,270 a year before tax, including bonuses, overtime and statutory pay.
Can I opt out of my workplace pension?
Yes. Contact the pension provider. If you opt out within a month of being enrolled, you get back what you've paid in.
When must employers pay pension contributions?
By the 22nd day of the next month, or the 19th if paying by cheque.
How often do employers re-enrol staff?
Every 3 years from the duties start date, with a re-declaration of compliance each time.
Can an employer refuse to let me join the pension?
If you're not automatically enrolled, you can usually still ask to join, and GOV.UK says your employer can't refuse.
