Last reviewed: June 2026 | Source: The Pensions Regulator and GOV.UK
TL;DR- Auto enrolment requires employers to put eligible workers into a workplace pension automatically.
- Eligible workers are aged 22 to State Pension age and earn more than 10,000 pounds a year.
- Minimum total contributions are 8 percent of qualifying earnings, made up of at least 3 percent from the employer and 5 percent from the worker.
- Workers can opt out within one month and have their contributions refunded.
- Employers must re-enrol eligible workers who have opted out roughly every three years.
Key Facts
●Eligibility age: 22 to State Pension age
●Earnings trigger: More than 10,000 pounds a year
●Qualifying earnings band 2026/27: 6,240 pounds to 50,270 pounds
●Minimum total contribution: 8 percent of qualifying earnings
●Employer minimum: 3 percent of qualifying earnings
●Re-enrolment cycle: Approximately every three years
Auto enrolment has transformed workplace pensions in the UK, requiring employers to enrol eligible staff into a pension and contribute to it automatically. For workers, it means a portion of pay goes into a pension unless they actively choose otherwise, with the employer adding money on top. This guide explains who is eligible, how contributions are calculated on the qualifying earnings band, the rules on opting out and re-enrolment, the role of NEST, and the duties that The Pensions Regulator enforces on employers.
How auto enrolment works
Auto enrolment is the legal duty on employers to automatically put eligible workers into a qualifying workplace pension and make contributions to it. The worker does not have to do anything to join, which is the point of the policy: it relies on inertia to increase pension saving rather than requiring people to opt in.
Once enrolled, contributions are deducted from the worker's pay and combined with the employer's contribution and, in most cases, tax relief from the government. The money is invested in the pension scheme until the worker can access it, which is currently from the minimum pension age.
Employers must assess their workforce, enrol those who qualify, and keep records to show they have met their duties. The system applies across employers of all sizes, and the duties are ongoing rather than a one-off task.
Who is eligible
A worker must be automatically enrolled if they are aged at least 22 and under State Pension age, earn more than 10,000 pounds a year, and ordinarily work in the UK. Workers who meet these conditions are known as eligible jobholders and must be put into the scheme by their employer.
Workers who do not meet all the criteria, for example because they earn less or are outside the age range, may still have the right to join the pension and in some cases to receive employer contributions if they ask. The rules distinguish between eligible jobholders, non-eligible jobholders and entitled workers.
Because eligibility depends on age and earnings, a worker's status can change, for example if their pay rises above the trigger or they reach 22. Employers must monitor this and enrol workers when they become eligible, which is why assessment is an ongoing duty rather than a single check.
Contribution rates and qualifying earnings
The minimum total contribution under auto enrolment is 8 percent of qualifying earnings, made up of at least 3 percent from the employer and the remainder from the worker, which is typically 5 percent including tax relief. Employers can choose to pay more than the minimum, in which case the worker may need to pay less to reach the total.
Qualifying earnings are a band of earnings between a lower and an upper limit, set at 6,240 pounds and 50,270 pounds for the 2026/27 year. Contributions are calculated on earnings within this band, so the first slice of pay up to the lower limit and any pay above the upper limit are not counted, unless the employer uses a different defined basis.
This banded approach means the contribution is based on a portion of pay rather than the whole salary, which keeps the calculation consistent across earners. Some employers calculate contributions on full pay or basic pay instead, provided the scheme still meets the minimum standards.
Opting out and refunds
Workers who are automatically enrolled can choose to opt out, and if they do so within the opt-out window, generally one month from being enrolled, they are treated as never having joined and any contributions they have made are refunded. Opting out is a deliberate choice the worker must make, and employers are not allowed to encourage it.
After the one-month window, a worker can still stop contributing, but this is treated as ceasing active membership rather than opting out, and contributions already paid usually stay in the pension rather than being refunded. The money then remains invested until the worker can access it.
Because opting out means losing the employer contribution and the tax relief, it reduces the worker's overall pension saving. The opt-out process must be initiated by the worker through the pension scheme, which keeps the decision in the worker's hands.
Re-enrolment every three years
Employers have a duty to re-enrol eligible workers who have opted out or left the scheme, approximately every three years. This periodic re-enrolment gives workers who previously opted out another opportunity to remain in the pension, again relying on inertia to support saving.
On the re-enrolment date, eligible workers are put back into the scheme and contributions resume, and those workers can choose to opt out again within the usual window if they still do not wish to participate. Employers must carry out re-enrolment and complete a declaration of compliance to the regulator.
Re-enrolment ensures that opting out is not a permanent decision and that workers are periodically reminded of the opportunity to save with an employer contribution. Workers who wish to stay out must actively opt out again each cycle.
NEST and employer duties enforced by TPR
NEST, the National Employment Savings Trust, is a workplace pension scheme set up to support auto enrolment, with a public service obligation to accept any employer that wants to use it. It was established so that all employers, including small ones, would have access to a qualifying scheme, although employers can choose other providers.
The Pensions Regulator, or TPR, oversees auto enrolment and enforces employer duties. Employers must assess their workforce, enrol eligible workers, make the required contributions, handle opt-outs correctly and complete a declaration of compliance. Failing to meet these duties can lead to enforcement action and penalties.
For workers, the regulator's oversight means employers are held to account for putting eligible staff into a pension and paying their share. For employers, it means auto enrolment is a continuing legal responsibility with record-keeping and reporting obligations, not a one-off setup task.
Frequently Asked Questions
Who is automatically enrolled in a workplace pension?
A worker must be automatically enrolled if they are aged at least 22 and under State Pension age, earn more than 10,000 pounds a year, and ordinarily work in the UK. These workers are known as eligible jobholders. Workers who do not meet all the criteria may still be able to join the pension, and in some cases receive employer contributions, if they ask their employer.
How much goes into an auto enrolment pension?
The minimum total contribution is 8 percent of qualifying earnings, made up of at least 3 percent from the employer and the rest from the worker, typically 5 percent including tax relief. Qualifying earnings are the band between 6,240 pounds and 50,270 pounds for 2026/27, so contributions are calculated on pay within that band unless the employer uses a different qualifying basis that still meets the minimum standards.
Can I opt out of auto enrolment and get my money back?
Yes. If you opt out within the opt-out window, generally one month from being enrolled, you are treated as never having joined and any contributions you made are refunded. If you stop contributing after that window, it is treated as ceasing membership rather than opting out, and contributions already paid usually stay in the pension. Opting out means losing the employer contribution and tax relief.
What is re-enrolment?
Re-enrolment is the employer's duty to put eligible workers who have opted out or left the scheme back into the workplace pension approximately every three years. On the re-enrolment date, those workers are enrolled again and contributions resume, and they can choose to opt out again within the usual window. Employers must carry out re-enrolment and complete a declaration of compliance to The Pensions Regulator.
