Automatic enrolment is the legal requirement for UK employers to enrol eligible workers into a workplace pension scheme and contribute to their retirement savings.
What is automatic enrolment?
Automatic enrolment was introduced in 2012 to help more people save for retirement. It requires every UK employer to automatically enrol eligible employees into a qualifying workplace pension scheme.
Eligibility is based on age, earnings and employment status. Employees must be aged between 22 and State Pension age, earn over £10,000 a year and work in the UK. Those who meet the criteria must be enrolled and receive employer pension contributions.
Employees can choose to opt out, but employers must re‑enrol eligible staff every three years. Employers also have ongoing duties, including recordkeeping, communications and ensuring contributions are paid correctly.
Automatic enrolment has significantly increased pension participation across the UK workforce and is a core part of employer compliance.
Things to know
- Applies to employees aged 22 to State Pension age earning over £10,000
- Employers must contribute to the pension scheme
- Employees can opt out but must be re‑enrolled every three years
- Employers must keep accurate records and meet reporting duties
- Non‑compliance can lead to enforcement action from The Pensions Regulator
FAQs
Who must be automatically enrolled?
Employees aged 22 to State Pension age earning over £10,000 a year and work in the UK.
Can employees opt out?
Yes. Employees can opt out after being enrolled, but employers must re‑enrol eligible staff every three years.
What does the employer have to do?
Employers must assess eligibility, enrol qualifying workers, pay contributions and meet communication and record-keeping duties.
What happens if an employer doesn’t comply?
The Pensions Regulator can issue fines or take enforcement action.
