Automatic enrolment was introduced by the Pensions Act 2008 and requires every UK employer to enrol eligible workers into a qualifying workplace pension scheme without requiring the worker to opt in. Eligible workers are aged between 22 and State Pension age, ordinarily work in the UK, and earn above the earnings trigger (£10,000 per year for 2025-26). Non-eligible and entitled workers have the right to opt in or join respectively, and the employer must facilitate this on request.
Minimum total contributions are currently 8% of qualifying earnings, of which at least 3% must come from the employer. Qualifying earnings are the band of pay between the lower earnings limit (£6,240) and the upper earnings limit (£50,270) for 2025-26. Employers may use a different earnings basis if the scheme satisfies a test-scheme standard or passes the alternative quality test. Workers who opt out can re-enrol every three years if they remain eligible.
Employers must complete a declaration of compliance with The Pensions Regulator within five months of their staging or duties start date. Ongoing duties include re-enrolment every three years, maintaining records for six years, and managing opt-out requests within prescribed timescales. Non-compliance can result in fixed-penalty notices, escalating daily fines, and, in serious cases, court action. New employers since October 2017 have duties from their first day of employing staff.