Workplace pension auto-enrolment explained

Who is enrolled, how much goes in and what you can do about it.

The short answer

If you are 22 or over, earn at least £10,000 a year and work in the UK, your employer must usually put you into a workplace pension automatically. The legal minimum is 8% in total of your qualifying earnings: at least 5% from you (including tax relief) and at least 3% from your employer. You can opt out, but you would lose your employer's contribution.

What counts as qualifying earnings

The minimum is worked out on earnings between £6,240 and £50,270 a year, before tax.
It includes salary, bonuses, commission, overtime and statutory payments such as sick and maternity pay.
Some employers pay on your full salary or more than the minimum, so check your own scheme.

A worked example

On a £30,000 salary, qualifying earnings are £30,000 minus £6,240, which is £23,760. At the minimum rates, 5% is about £1,188 a year (including tax relief, so a basic-rate taxpayer pays about £950 from take-home pay) and 3% from your employer is about £713 a year. See the pension calculator to try your own numbers.

Joining, opting out and tax relief

You can opt out after being enrolled. Your employer cannot encourage or force you to.
If you are not automatically enrolled, for example because you are under 22 or earn under £10,000, you can usually still ask to join, and your employer cannot refuse.
Tax relief is added to what you pay. See pension tax relief explained.
Some employers offer salary sacrifice, which can cut both tax and National Insurance. See salary sacrifice explained.

Where to learn more

This guide is for information only and is not tax, benefits or financial advice. Rules and amounts can change, so check the official pages before you rely on them.