🇬🇧 UK · Employment Law · Updated 2026-06-27
What is auto-enrolment pension in the UK?
Auto-enrolment requires employers to automatically enrol eligible workers into a workplace pension. Minimum contributions are 8% of qualifying earnings total — at least 3% from the employer, the remainder from the employee.
Auto-enrolment is a legal requirement under the Pensions Act 2008. Employers must automatically enrol any worker aged 22 to state pension age who earns above £10,000 per year (the earnings trigger) into a qualifying workplace pension scheme. Workers aged 16–21 or over state pension age who earn above the lower earnings limit (£6,240) can opt in.
Minimum total contributions must be at least 8% of qualifying earnings (earnings between £6,240 and £50,270 per year). Your employer must contribute at least 3%; you contribute the remainder (5%), which is boosted by tax relief at your marginal rate. Many employers contribute more than the minimum — check your contract or scheme documentation.
You have the right to opt out within one month of being enrolled and receive a full refund of contributions made. However, your employer will re-enrol you every 3 years. Opting out means losing your employer's contribution — usually an unwise financial decision. The Pensions Regulator (TPR) enforces auto-enrolment compliance.