Workplace pensions: employer duties and employee rights

UK workplace pension rules put the duty on your employer: if you qualify, they must enrol you and pay into your pension. You can opt out. If you work part-time, shifts or agency jobs, lower pay does not necessarily mean you lose the right to employer contributions.

Workplace pension rules: who must be auto-enrolled?

Automatic enrolment means your employer puts you into a workplace pension without you having to ask. It is often shortened to auto-enrolment or AE. The duty comes from the Pensions Act 2008. Compulsory enrolment is an employer duty, not a rule forcing you to stay in the scheme.

What age do you start paying into a workplace pension?

The normal automatic enrolment age is 22, provided you meet the pay test and ordinarily work in the UK. The upper limit is your State Pension age, rising from 66 to 67 between 2026 and 2028. Turning 22 alone does not trigger contributions if your pay is too low.

You do not have to wait until 22 to get employer contributions. Workers aged 16-21 can opt in if their earnings are above the qualifying-earnings floor. Workers from State Pension age to 74 have the same opt-in right. Your age decides whether enrolment is automatic; it does not by itself decide whether your employer must pay when you ask to join.

Auto-enrolment thresholds: how much do you need to earn?

The annual auto-enrolment trigger is over £10,000 in one job. Your employer assesses your pay each pay period rather than relying on your estimated annual salary. The 2026/27 earnings thresholds are unchanged from 2025/26.

You must earn more than the applicable trigger for automatic enrolment. If you earn above the lower limit but not above the trigger, you can ask to opt in and your employer must contribute. At or below the lower limit, you can ask to join a scheme but your employer need not pay in. These opt-in and joining rights apply to workers aged 16-74.

Pay for the test includes wages, commission, bonuses, overtime and statutory sick, maternity, paternity, adoption and shared parental pay. A busy month can take a zero-hours worker over the trigger even if their annual pay estimate is lower. Your employer can postpone enrolment for up to three months but must tell you in writing. You can opt in during that delay.

Auto-enrolment pension contributions: what must your employer pay?

The standard legal minimum is 8% of qualifying earnings in total, including at least 3% from your employer. You cover the rest, normally 5% including tax relief. These minimums have applied since 6 April 2019. Your scheme can pay more; 3% is a floor, not a limit on what your employer can contribute.

What are qualifying earnings for pension contributions?

Qualifying earnings are the slice of your pay between £6,240 and £50,270 a year. The band is unchanged for 2026/27 from 2025/26. Under this standard basis, no minimum contribution is due on the first £6,240 or on pay above £50,270. That is why an 8% pension contribution is not usually 8% of your whole salary.

Some schemes use a legally certified alternative, such as contributions based on basic pay. Ask payroll which contribution basis your scheme uses before deciding a payment is wrong.

At higher pay, the standard contribution calculation stops at £50,270. On £60,000, qualifying earnings are £50,270 − £6,240 = £44,030, making the employer minimum £1,320.90 a year.

Why your payslip deduction may be less than 5%

In a relief-at-source scheme, your provider adds basic-rate tax relief to your payment, even if you do not pay income tax. Higher-rate taxpayers may need to claim more. In a net-pay scheme, contributions come off before tax; immediate relief works differently for non-taxpayers. Ask which arrangement you are in before comparing your deduction with the 5% figure.

Salary sacrifice replaces some salary with an employer pension contribution and can save National Insurance where applicable. Ask payroll to compare your take-home pay and benefits before agreeing. From 6 April 2029, the annual NI exemption is limited to £2,000; sacrificed contributions above that attract Class 1 NICs. Income-tax relief is unaffected.

Your workplace pension is separate from the State Pension. The full new State Pension rate is £241.30 a week in 2026/27.

Workplace pensions on low pay, part-time hours or two jobs

Part-time workers have the same age and earnings tests. The gap is that lower earners must ask for employer contributions rather than receiving them automatically.

Under £10,000 in one job

If you are aged 16-74 and earn £9,000 a year, ask to opt in: your employer must contribute. A part-time cleaner on steady £9,000 pay has qualifying earnings of £9,000 − £6,240 = £2,760. The standard employer minimum is £82.80 a year; your 5%, including tax relief, is £138.00. On £6,000 you can still ask to join, but the employer need not pay in.

Two part-time jobs

Each employer assesses you separately. £7,000 plus £7,000 means no automatic enrolment in either job, even though the total exceeds £10,000. You can opt in with each employer and get contributions from both. If only one job takes you over the trigger, automatic enrolment applies 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.

Do you have to join a workplace pension scheme?

You do not have to stay in a workplace pension. Your employer normally must enrol you first if you qualify; you can then choose to opt out. They must not pressure you to leave. The Pensions Act 2008 prohibits inducing workers to opt out, screening job applicants on pension choices, and dismissing or penalising workers for exercising pension rights.

How to opt out and get a refund

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.

How to opt in if you are not enrolled automatically

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.

What happens to my pension when I change jobs?

Your old pension pot stays where it is unless you transfer it. Changing jobs does not mean losing the savings already there, and it does not automatically move them into your new employer’s scheme. Your new employer assesses you afresh under the age and pay tests.

You can consider transferring an old pot, but check charges and guarantees before moving it. The Pension Schemes Act 2026, which received Royal Assent on 29 April 2026, contains powers to consolidate small dormant pots. Those powers are not an automatic transfer service you can use now. A pensions-dashboard connection deadline for in-scope schemes is not a public launch date either. If you are reducing hours rather than leaving, see phased retirement.

Employer pension duties: what should you receive?

• A check of your eligibility each pay period. An employer taking on staff for the first time has pension duties from the day the first worker starts, not after probation.
• Written information within six weeks. Your employer must explain how the pension rules apply to you and enrol you in a qualifying scheme if required.
• Contributions paid to the scheme. Payments are usually due by the 22nd of the month after deduction. A special rule allows the first three months’ contributions to be paid together by the 22nd of month four.
• Re-enrolment if you still qualify. Eligible workers who opted out are normally put back in at the employer’s three-yearly re-enrolment date.

Your employer must also keep records and file a declaration of compliance within five calendar months of starting duties, even if nobody needs enrolling, then re-declare every three years. That paperwork does not replace the duty to enrol you and pay.

If an employer ignores a statutory notice, The Pensions Regulator can issue a fixed £400 penalty, followed by an escalating penalty of £50 to £10,000 a day depending on headcount. Wilful failure to enrol eligible staff or knowingly filing false information can lead to prosecution, with up to two years’ imprisonment or a fine. A fine does not clear the contributions owed to you. Employers may also have to cover missed employee contributions where they cannot recover them lawfully. For related pay and paperwork questions, see written terms and employer obligations and employer NI basics.

Pension compliance: what if your employer has not enrolled you or paid?

1. Compare your payslip with your pension account. Check both your deduction and the employer payment. A payslip proves money was taken, not that it reached the scheme. Check the payment deadline above before treating a contribution as overdue.
2. Write to payroll. Give the pay date and amount missing, or ask why you have not been enrolled. Keep the message, payslip and provider statement. Ask for the calculation and when the missing money will reach your pension.
3. Report unresolved missing enrolment or payments. Contact The Pensions Regulator. Give the employer a chance to explain, but repeated silence is not a reason to keep waiting.

If your employer deducts pension money and does not pass it to the scheme when due, that is wage theft. If they punish you or threaten your job for raising pension rights, get advice promptly. Do not let an internal complaint run down a tribunal deadline.

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.

Are workplace pension rules changing?

The standard 8% total and 3% employer minimums have not changed. The 31 October 2026 deadline is for in-scope schemes to connect to pensions dashboards, not a promise that a public dashboard will be open. Do not confuse proposed wider pension rights with rules you can use now.

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.

When did pension auto-enrolment start in the UK?

Automatic enrolment began in October 2012 under the Pensions Act 2008. Employer duties were phased in through February 2018, so there was not one start date for every workplace. For employers first taking on staff on or after 1 October 2017, duties start on the day the first worker starts work.

Workplace pension rules: questions people ask

Is a workplace pension mandatory in the UK?

Your employer normally must enrol you if you meet the age and earnings tests. You are not forced to stay: you can opt out. For a full refund, use the one-calendar-month window starting from the later of enrolment or receipt of the required enrolment information. Leaving later usually means your pot stays invested.

What age does automatic enrolment start?

Normally 22, if you earn over the applicable trigger and are below State Pension age. You can ask to opt in from 16 and get employer contributions if you earn above the lower qualifying-earnings limit. There is no single compulsory age at which every UK worker must start paying.

What were qualifying earnings for pension in 2025/26?

The standard band was £6,240 to £50,270 a year, unchanged for 2026/27. Contributions use only the slice of pay within that band. The separate £10,000 auto-enrolment trigger decides whether you must be enrolled automatically, not how much of your pay attracts contributions.

Does my employer have to pay more than 3% in 2026?

Under the standard qualifying-earnings basis, the legal employer minimum is 3%, with at least 8% going in overall. Your scheme can provide more or use a legally certified alternative contribution basis. The normal 5% worker share includes tax relief, so it is not always the amount deducted from take-home pay.

What does AE pension mean?

AE means automatic enrolment: your employer puts you into a workplace pension when you meet the legal tests. It is not the State Pension and does not mean you have lost the right to opt out.

Do I lose my pension when I change jobs?

No. Your old pot stays where it is unless you transfer it. Your new employer assesses you separately and enrols you if required. Check charges and guarantees before moving old savings; they do not automatically follow you into the new scheme.

Sources

1. Pensions Act 2008, legislation.gov.uk
2. Workplace pensions, what your employer can and cannot do, GOV.UK
3. Review of the automatic enrolment earnings trigger and qualifying earnings band 2026/27, DWP
4. What you, your employer and the government pay, GOV.UK
5. If you want to leave your workplace pension scheme, GOV.UK
6. Opting out, The Pensions Regulator
7. Re-enrolment and re-declaration, The Pensions Regulator
8. Postponement, The Pensions Regulator
9. How we enforce, The Pensions Regulator
10. Pension Schemes Act 2026, legislation.gov.uk
11. Pensions (Extension of Automatic Enrolment) Act 2023, legislation.gov.uk
12. Salary sacrifice reform for pension contributions from 6 April 2029, GOV.UK
13. Britain is undersaving for retirement, Pensions Commission interim, GOV.UK
14. Benefit and pension rates 2026 to 2027, GOV.UK
15. GAD and the State Pension age review, GOV.UK
16. Employers’ workplace pension obligations, nidirect
17. Analysis of Automatic Enrolment saving levels, DWP
18. Compliance and enforcement bulletin, April 2025 to March 2026, The Pensions Regulator
19. Contact The Pensions Regulator, The Pensions Regulator
20. Early conciliation, Acas
21. Work, Citizens Advice
22. Find a law centre, Law Centres Network
23. UNISON
24. Unite the Union
25. GMB