Workplace pensions: employer duties and employee rights

Your workplace pension is pay you are building for later, and you have a right to ask where it is going. Check your latest payslip against your pension account today. If you are eligible, your employer must enrol you and pay in; if you earn less, you may still be able to join. On a £25,000 salary, the standard legal minimum going into your pension is £1,500.80 a year, not £2,000, because contributions are calculated on a slice of pay.

Who must be enrolled

The duty comes from the Pensions Act 2008. An employer taking on staff for the first time has duties from the day the first worker starts. Payroll checks eligibility each pay period. A variable-hours worker’s pay in one month can put them over the trigger even if their annual salary estimate is lower.

You are an eligible jobholder if you ordinarily work in the UK, are aged 22 but below State Pension age (currently 66, rising to 67 between 2026 and 2028), and earn over the £10,000 annual earnings trigger. Payroll uses the matching 2026/27 pay-period figures: £833 a month, £192 a week or £768 every four weeks. The precise boundary is the applicable pay-period figure, not what two jobs earn together.

For the test, earnings include wages, commission, bonuses, overtime and statutory sick, maternity, paternity, adoption and shared parental pay. An employer can postpone enrolment for up to three months, for instance for a short contract or a new starter, but must write to tell you. An eligible worker can opt in during the delay.

Why the minimum is not 8% of your salary

Since 6 April 2019 the standard minimum has been 8% of qualifying earnings, including at least 3% from the employer. The 2026/27 qualifying slice runs from £6,240 to £50,270. No standard minimum is due on the first £6,240 of pay or the part above £50,270.

Some schemes use legally certified alternatives based on another definition of pensionable pay, such as basic pay. Ask for the scheme’s contribution basis rather than assuming that 8% of your whole salary will appear on your statement.

Tax relief depends on the scheme. Under relief at source, the provider adds basic-rate relief to what you pay, even if you do not pay income tax. Higher-rate taxpayers may need to claim more. Under net pay, contributions come off before tax, so the immediate relief works differently for non-taxpayers. Salary sacrifice replaces some salary with an employer pension contribution and can save National Insurance where applicable. A legislated £2,000 annual NI exemption limit starts on 6 April 2029; above it, sacrificed pension contributions attract Class 1 NICs. Income-tax relief is unaffected. The full new State Pension is £241.30 a week in 2026/27. Your workplace pension is separate.

Part-time, low pay and second jobs

There are no separate part-time rules. Your age and pay in the relevant period determine the result.

Under £10,000 in one job

On £9,000 you are a non-eligible jobholder. Ask to opt in and your employer must contribute. For example, a part-time cleaner on steady £9,000 pay has qualifying earnings of £9,000 − £6,240 = £2,760, so the employer minimum is £82.80 a year and your 5% is £138.00. On £6,000 you are an entitled worker. You can join, but the employer need not pay in.

Two part-time jobs

Each employer assesses you separately. £7,000 plus £7,000 means no auto-enrolment in either job. You can opt in with each employer. One job over £10,000 means enrolment there only.

Fluctuating pay and leave

Zero-hours staff may cross the earnings trigger in a busy pay period. A bar worker, retail assistant, warehouse picker or delivery driver can see pay jump with overtime, shifts or workload. Once enrolled, lower pay in a later period does not automatically remove you from the scheme. Pension contributions during maternity, parental or sick leave depend on the type of leave, the pay received and the scheme’s rules. Ask payroll how they calculated yours. See part-time worker rights and zero-hours contracts.

Opting out, opting in and being put back in

You may leave, but your employer must not pressure you to do so. The Pensions Act 2008 prohibits inducing workers to opt out, screening job applicants on pension choices, and dismissing or subjecting workers to detriment for exercising pension rights.

If you are thinking of opting out, check the deadline now. Obtain the notice from the scheme, not your employer. The one-calendar-month window runs from the later of enrolment or the date you receive the required enrolment information. Contributions deducted in that window are refunded. Leave later and the scheme’s rules apply; normally your pot remains invested rather than being refunded. If you still qualify, your employer will usually re-enrol you at its three-yearly re-enrolment date, when you may opt out again.

To opt in, write to your employer and keep a copy. A non-eligible jobholder aged 16-74 can require membership with employer contributions. An entitled worker in that age range can require access to a scheme without an employer contribution. These statutory jobholder rights do not extend to workers younger than 16 or aged 75 and over. See GOV.UK on leaving a scheme and contributions.

Changing jobs and old pots

A new employer assesses you afresh. Your old pension pot stays where it is unless you transfer it. Check charges and guarantees before moving it. The Pension Schemes Act 2026 received Royal Assent on 29 April 2026 and contains powers to consolidate small dormant pots, but these are not an automatic transfer service available to you now. In-scope schemes have a pensions-dashboard connection deadline of 31 October 2026. That does not mean a public dashboard is already open. If you are reducing hours, see phased retirement.

Employer duties and penalties

1. Assess from day one. Know your duties-start date, choose a qualifying scheme (such as NEST or another qualifying master trust), assess every worker each pay period and write to each one within six weeks explaining their category.
2. Pay into the scheme. Enrol eligible jobholders and handle opt-ins. Pay contributions to the scheme, usually by the 22nd of the month after deduction, and keep age, earnings, enrolment and contribution records.
3. Declare, then re-enrol. File the declaration of compliance within five calendar months of starting duties, even if nobody needed enrolling. Every three years, re-enrol eligible opt-outs and re-declare.

If an employer ignores a statutory notice, The Pensions Regulator can issue a fixed £400 penalty and then an escalating penalty of £50 to £10,000 a day, depending on headcount, until compliance. Wilfully failing to enrol eligible staff or knowingly filing false information can bring prosecution, with up to two years’ imprisonment or a fine. Outstanding contributions still have to be paid; employers may have to cover missed employee contributions where they cannot recover them lawfully. For payroll and records, see the small-employer checklist and employer NI basics.

If your employer falls short

Take ten minutes after your shift: check the payslip for a pension deduction, sign in to your provider account and compare what was paid in. A payslip proves a deduction, not that the money reached your pension. If a payment is missing, write to payroll with the pay date and amount; keep your message and payslip. Give the employer a chance to explain, but do not let repeated silence run down any tribunal deadline if you face detriment or dismissal for asserting your rights. Report missing enrolment or contributions to The Pensions Regulator. If money was deducted and not paid into the scheme, that is wage theft.

You do not have to chase this alone. Ask your union representative for help: UNISON represents many care and health workers; Unite and GMB organise workers across hospitality, retail, warehouses and delivery. If you are not a member, Citizens Advice or a local law centre can help you work out the next step. If your employer punishes you or threatens your job for asserting pension rights, contact Acas promptly about early conciliation before an employment tribunal claim. Agency workers should approach the agency or umbrella company responsible for their pay; see agency worker rights and umbrella company workers. If status is disputed, start with employee, worker or self-employed.

Pension changes in force and still to come

1. 29 Apr 2026Pension Schemes Act 2026 receives Royal Assent

   It creates a framework for scheme reform and powers for small-pot transfers; individual provisions need commencement and, in places, further regulations. The 8% and 3% minimums have not changed.

2. 31 Oct 2026Dashboard connection deadline

   Deadline stated for in-scope schemes to connect, not a guaranteed public launch date.

3. Early 2027Pensions Commission report expected

   Its May 2026 interim report warned of undersaving; a report is not a change in contributions law.

4. By Apr 2028State Pension age rises to 67

   The gradual rise from 66 is already under way and changes the upper auto-enrolment age for affected workers.

5. 6 Apr 2029Salary-sacrifice NI limit begins

   The first £2,000 of pension salary sacrifice each year remains NI-exempt; above that, Class 1 NICs apply.

The pension duties and minimums apply across the UK; Northern Ireland has equivalent workplace-pension rules. Income-tax relief can differ in Scotland because Scottish tax rates differ; the pension contribution rules do not. See Northern Ireland employment differences and tax on employee benefits.