Eligibility thresholds 2026/27
Automatically enrol workers who are: - Aged 22 to State Pension age - Earning above £10,000/year (or £192/week) - Working in the UK
Non-eligible jobholders (aged 16-21 or above SPA, earning £6,240-£10,000) can opt IN. Entitled workers (earning below £6,240) can join but no employer contribution required.
Minimum contributions
- Employee: 5% (of qualifying earnings £6,240-£50,270)
- Employer: 3% (of qualifying earnings)
- Total: 8%
Employer can pay all 8% + reduce employee share to zero.
Opt-out
Workers may opt out within 30 days of enrolment for full refund of contributions. After 30 days, contributions stay in scheme.
Re-enrolment
Every 3 years, employers must automatically re-enrol workers who previously opted out. Same eligibility rules apply.
Compliance + penalties
TPR enforcement: - Fixed penalty: £400 - Escalating penalty: £50-£10,000/day depending on employer size - Compliance notice: TPR direction to fix within specified period
Salary sacrifice pension option
Employers can offer salary sacrifice pension arrangement: - Employee agrees to reduce gross salary in exchange for equivalent employer pension contribution - Both save NI (employee saves 8%, employer saves 15%) - Some employers share NI saving with employee via increased contribution
In short
Auto-enrolment = 8% total minimum, 3-year re-enrolment cycle, escalating penalties. Salary sacrifice option saves NI for both parties.