Answers · UK 2025/26
How does automatic enrolment into a workplace pension work?
All eligible UK workers are automatically enrolled into a workplace pension if they earn over £10,000/year and are aged 22 to State Pension Age. The minimum total contribution is 8% of qualifying earnings (£6,240–£50,270 band): employees pay 5% (including 1% tax relief), employers pay 3%.
Full answer
**Automatic enrolment** was introduced in 2012 and has since enrolled over 10 million UK workers into workplace pensions who would otherwise have saved nothing for retirement. **Who gets auto-enrolled (2026/27):** - **Age:** 22 to State Pension Age (currently 66) - **Earnings:** Over £10,000 gross per year (£833/month, £192/week) - **Working in the UK:** applies to all UK employers regardless of size **Qualifying earnings band (2026/27):** - Lower limit: **£6,240/year** - Upper limit: **£50,270/year** - Contributions are calculated on earnings **within this band only** (not on total earnings) **Minimum contributions:** | Contributor | Minimum | |---|---| | Employer | 3% of qualifying earnings | | Employee (including tax relief) | 5% of qualifying earnings | | **Total** | **8%** | At £30,000 salary: qualifying earnings = £30,000 − £6,240 = £23,760. Employee contribution at 5% = £1,188/year. Employer at 3% = £713/year. **Opt-out:** You have a **one-month window** to opt out after enrolment. If you opt out, you receive back any contributions already made. Your employer must re-enrol you every **3 years** — you can opt out again each time. **Salary sacrifice vs relief at source:** - **Relief at source (most providers, e.g. NEST):** You contribute net pay; provider claims 20% basic-rate relief from HMRC and adds it to your pension — even non-taxpayers get 20% relief - **Salary sacrifice:** Your gross salary is reduced before tax/NI; you save IT and NI on contributions; employer also saves 13.8% employer NI **NEST (National Employment Savings Trust):** NEST is the default workplace pension scheme for employers who don't have their own arrangement. It's run by a public body, has low charges (0.3% annual + 1.8% on contributions), and must accept all employers. **Self-employed:** Self-employed workers are **not auto-enrolled** — they must arrange their own pension (SIPP or personal pension). The government has consulted on extending auto-enrolment to self-employed workers but no date is set.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.