What auto-enrolment is
Under the Pensions Act 2008, every employer must automatically enrol eligible workers into a qualifying workplace pension and pay employer contributions. The system is overseen by The Pensions Regulator.
Eligibility
You're an "eligible jobholder" if you:
- Are aged between 22 and State Pension Age
- Earn over £10,000 a year (the auto-enrolment trigger, 2025/26)
- Work or ordinarily work in the UK
Workers earning above the lower threshold (£6,240) but below £10,000 can ask to opt in — and the employer still has to pay contributions.
Minimum contributions
From 6 April 2019 the minimum total contribution is 8% of qualifying earnings, split:
- Employer: at least 3%
- You: at least 5% (including tax relief)
Qualifying earnings for 2025/26: between £6,240 and £50,270.
Many employers pay more than 3%. Some calculate on full salary not just qualifying earnings.
Opting out
You can opt out within 1 month of being enrolled and get any contributions refunded. After that, you can leave but contributions already paid stay in the pot.
Every 3 years the employer must re-enrol any opt-outs who are still eligible — you have to opt out again if you don't want to be in.
What to check
- Are contributions actually being deducted and paid into the scheme? Ask for confirmation.
- Is the pension a qualifying scheme (you can check via your provider)?
- If you change jobs, you can leave the pot with the old provider or transfer it.