Auto-enrolment: what employers must do
Every UK employer must automatically enrol qualifying staff into a workplace pension and contribute. Staff qualify if they are aged 22 to State Pension age and earn over £10,000 a year. Minimum total contribution is 8% of qualifying earnings, of which at least 3% must come from the employer.
Who has to be enrolled
Assessment happens every pay period, not once. Someone who was not eligible in March can become eligible in April because they got a pay rise or had a birthday.
| Category | Criteria | Your duty |
|---|---|---|
| Eligible jobholder | Aged 22 to State Pension age, earning over £10,000 | Must be enrolled and contributed to |
| Non-eligible jobholder | Aged 16-74 earning over £6,240 but under £10,000, or outside the age band | Can opt in, and you must contribute if they do |
| Entitled worker | Aged 16-74 earning under £6,240 | Can join, but you do not have to contribute |
How much you have to pay
Contributions are based on qualifying earnings, the band between £6,240 and £50,270.
| Who | Minimum |
|---|---|
| Employer | 3% |
| Employee | 5% (including tax relief) |
| Total | 8% |
You can pay more than 3% and many employers do, either to be competitive or to run a salary sacrifice arrangement, which saves both sides National Insurance.
The duties that get forgotten
A declaration of compliance must be submitted to The Pensions Regulator within five months of your duties starting. Missing it is the most common breach.
Staff must be written to individually within six weeks of being enrolled, explaining what has happened and how to opt out.
Opt-outs within one month must be refunded in full. After that, the money stays in the pension until retirement.
Re-enrolment happens every three years. Everyone who opted out goes back in automatically, and a new declaration of compliance is due. Employers routinely miss this one because three years is long enough to forget.
What it costs to get wrong
The Pensions Regulator issues a compliance notice first. Ignore it and there is a £400 fixed penalty, then escalating daily fines from £50 to £10,000 a day depending on headcount.
You also have to make good any missed contributions, including the employee's share, which you cannot then recover from them.
This guide is general information, current at 10 November 2026. Tax rules change and depend on your circumstances. Please take advice before acting on it.