Glossary · UK

What is Workplace Pension?

Employer-arranged pension under auto-enrolment — minimum 8% total contribution on qualifying earnings.

Full Definition

A workplace pension is a retirement scheme arranged by your employer. Under auto-enrolment, employers must enrol eligible workers aged 22 to State Pension age earning over £10,000/year, with minimum total contributions of 8% of qualifying earnings (£6,240–£50,270 band for 2025/26) — at least 3% from the employer and 5% from the employee (including basic-rate tax relief). Most modern workplace schemes are defined contribution (a pot you build up), administered by providers like NEST, The People's Pension or Aviva. You can opt out but lose employer contributions. Salary sacrifice arrangements can increase efficiency by saving employee + employer NI.