Workplace pension auto-enrolment: who is enrolled, what you pay and how to opt out
Published · 5 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
In 2026/27 many UK employees aged 22 to State Pension age who earn at least £10,000 are put into a workplace pension automatically, with minimum total contributions of 8% of qualifying earnings.
What auto-enrolment is and how it works
Automatic enrolment is a legal duty on UK employers to put eligible staff into a workplace pension and to pay into it, so that saving is the starting position rather than something each person has to arrange. A workplace pension is a retirement savings scheme set up by an employer, where a percentage of pay goes in on each payday and the employer usually adds money as well. Many people are also entitled to tax relief, which is government money added because pension contributions are taxed more favourably than ordinary pay. Staff who are enrolled stay in unless they take a step to leave, and that is the point of the design: the default does the work. This guide explains the rules for the 2026/27 tax year, who they cover, how the contributions are worked out and what leaving involves.
Who is enrolled and who is not
According to GOV.UK, an employer must enrol you if you are classed as a worker, you are aged between 22 and State Pension age, you earn at least £10,000 a year and you ordinarily work in the UK. That £10,000 is called the earnings trigger. The Pensions Regulator lists it for 2026/27 at £10,000 a year, or £833 a month and £192 a week, unchanged from 2025/26. Employers do not usually have to enrol someone who has given or received notice to leave the job, who has certain tax protections, or who has already taken a qualifying pension arranged by that employer. An employer can also delay enrolment by up to three months, but must tell you in writing and let you join in the meantime if you ask. Someone who does not meet the criteria can usually still ask to join, and the employer cannot refuse.
The key figures for 2026/27
The minimum total contribution is 8% of qualifying earnings, of which your employer pays at least 3% and you pay at least 5%, according to GOV.UK. Qualifying earnings are the slice of your yearly pay between a lower and an upper limit, which GOV.UK gives as £6,240 and £50,270 before tax. The Pensions Regulator confirms the same band for 2026/27 and says the figures match 2025/26, which means the band has not moved this year. Your scheme may require more than the legal minimum, and many do. If your employer pays more, you may be able to pay less, as long as the combined total still reaches 8%. Pay below the lower limit is not counted, and neither is pay above the upper limit, so the percentages are not applied to your whole salary unless your scheme chooses to use a wider definition of pay.
A worked example
This example uses illustrative figures and is not a recommendation. Suppose someone earns £30,000 a year and their employer uses the qualifying earnings band. Their qualifying earnings are £30,000 minus £6,240, which is £23,760. At the minimum rates, the 5% employee share is 0.05 x £23,760 = £1,188, the 3% employer share is 0.03 x £23,760 = £712.80, and the total is 0.08 x £23,760 = £1,900.80, or £158.40 a month. GOV.UK's own example shows how tax relief fits in: a worker paying £40 a payday, with an employer paying £30 and £10 of tax relief, has £80 going in. That is 40 out of 50 paid by the worker and the rest from relief, so for a basic rate taxpayer whose scheme adds relief this way, about £950.40 of the £1,188 would come from take-home pay and about £237.60 from relief. How relief is applied depends on the scheme and your tax position.
Opting out, being re-enrolled and rejoining
GOV.UK says employers must let you leave if you ask, and must refund what you have paid if you opt out within one month. The Pensions Regulator's guidance explains that this month runs from the start of the opt-out period, which is the later of the day you become an active member or the day you are given the enrolment information. The refund is due within one month of the employer receiving a valid notice. Employer contributions are not refunded to you, so opting out means giving up that money and the tax relief. After the opt-out window closes, leaving is governed by the scheme rules, and in some defined contribution schemes the money already paid stays invested rather than being refunded. GOV.UK also says employers must let you rejoin at least once a year, and must enrol you back in at least every three years if you have opted out and are still eligible. After re-enrolment you again have a month to opt out. Employers must not encourage or force you to opt out.
Common mistakes and where to get free help
One common mistake is assuming the 8% applies to the whole salary, when the legal minimum is based on the qualifying earnings band, so the actual cost can look lower than 5% of pay. Another is overlooking the lower limit for employer contributions, since people earning less than £10,000 who ask to join may find the employer is not obliged to pay in unless pay is above £520 a month. Some people miss that opting out outside the one-month window may not bring a refund. It can also help to check whether the scheme counts bonuses and overtime as pay. Free, impartial guidance is available from MoneyHelper, which is run by the Money and Pensions Service, and Pension Wise is available for defined contribution pensions at later ages. Whether to stay in a scheme depends on personal circumstances, so this guide does not say what anyone should do.
Check before you act
Thresholds, contribution rates and rules can change, usually from the start of a tax year. It can be worth confirming every figure on the official pages linked below and asking your payroll team or pension provider how your own contributions are worked out. Rules are the same across England, Scotland, Wales and Northern Ireland for the automatic enrolment duty, although Income Tax rates differ in Scotland, which affects the size of tax relief.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
