Auto-Enrolment
The legal requirement for employers to automatically enrol eligible workers into a workplace pension scheme and make contributions on their behalf. Workers aged 22 to State Pension age earning more than £10,000 per year must be enrolled, though they can opt out. Minimum total contributions are 8% of qualifying earnings, with at least 3% coming from the employer.
How it works
Auto-enrolment duties fall on the employer, who must assess every worker's age and earnings each pay period and automatically place eligible workers into a qualifying pension scheme without requiring them to take any action. Workers who are eligible can choose to opt out within a set window after being enrolled and receive a full refund of any contributions already deducted, but employers must re-enrol eligible staff who have opted out roughly every three years.
Workers who fall outside the automatic criteria — for example because they earn below the £10,000 trigger but above the lower earnings threshold, or are aged 16 to 21 — still have the right to opt in and receive employer contributions, even though the employer is not obliged to enrol them automatically. Self-employed people are outside the scope of auto-enrolment entirely, since it is built around the employer-employee relationship.
The 8% minimum total contribution and the employer's 3% share are calculated on a band of qualifying earnings rather than your entire salary, so the actual cash amount depends on how your specific pension scheme defines pensionable pay. Many employers choose to contribute more generously than the statutory minimum, and some offer salary sacrifice arrangements on top to increase the National Insurance saving.
Example: minimum contribution split
Auto-enrolment requires a minimum total contribution of 8% of qualifying earnings, split between you and your employer.
Of that 8%, at least 3% must come from your employer, meaning your own minimum contribution is 5% — though many employers choose to pay more than the statutory 3% minimum.
Frequently asked questions
Can I opt out of auto-enrolment?
Yes. You can opt out within the statutory window after being enrolled and receive a refund of any contributions already deducted from your pay.
What happens if I earn just above the £10,000 threshold?
You must be automatically enrolled by your employer, who will contribute alongside you, once your earnings pass the £10,000-a-year trigger and you are within the eligible age range.
Do self-employed people get auto-enrolled?
No. Auto-enrolment only applies to workers with an employer, so self-employed people need to arrange their own pension saving separately.
Related Terms
Salary Sacrifice
An arrangement where you give up part of your salary in exchange for a non-cash benefit such as employer pension contributions, a cycle-to-work scheme, or an electric car.
Pension Tax Relief
A government top-up on pension contributions that effectively returns income tax paid on the contributed amount, making pensions a highly tax-efficient saving vehicle.
Annual Allowance
The maximum amount you can contribute to registered pension schemes each tax year while still receiving tax relief, currently set at £60,000.
Try the calculator
Use our free tool to see how auto-enrolment affects your tax.