What Is Auto-Enrolment? (UK 2025/26)

Auto-enrolment is a UK law that requires employers to automatically enrol eligible workers into a workplace pension scheme and make contributions. It was introduced to address the problem of millions of workers having no private pension savings.

Who Gets Auto-Enrolled

You must be auto-enrolled if you are aged between 22 and state pension age, earn above the earnings trigger (£10,000 per year for 2025/26), and work in the UK. Workers outside these criteria can opt in, and in some cases their employer must still contribute.

Minimum Contributions

The minimum total contribution is 8% of qualifying earnings — the band of earnings between £6,240 and £50,270 for 2025/26. This is split as a minimum 3% from the employer and 5% from the employee (which includes tax relief). Many employers offer more generous schemes, particularly through salary sacrifice arrangements.

Opting Out

You can opt out within one month of being enrolled, and your contributions will be refunded. However, your employer will re-enrol you roughly every three years. You can opt out again each time, but the system is deliberately designed to make staying in the default.

Salary Sacrifice and Auto-Enrolment

Many employers operate auto-enrolment through salary sacrifice, which means both employer and employee save on National Insurance. The employer's NIC saving on the 3% minimum contribution is often passed to the employee as a higher pension contribution — a meaningful benefit.