UK Workplace Pension Auto-enrolment (2026/27)
Under UK auto-enrolment rules, your employer must enrol you in a workplace pension if you are 22+ and earn over £10,000 a year. The statutory minimum contribution is 8% of qualifying earnings - 3% employer + 5% employee, applied to the slice of salary between £6,240 and £50,270. Many employers contribute more than the 3% statutory minimum.
Contribution amounts by salary
Statutory minimum on qualifying earnings (England rules, no other adjustments). "Take-home cost" is the actual reduction in net pay after the 5% employee contribution gets Income Tax + NI relief.
| Gross salary | Qualifying earnings | Employer 3% | Employee 5% | Total (8%) | Cost to take-home |
|---|---|---|---|---|---|
| £20,000 | £13,760 | £413 | £688 | £1,101 | £495 |
| £30,000 | £23,760 | £713 | £1,188 | £1,901 | £855 |
| £40,000 | £33,760 | £1,013 | £1,688 | £2,701 | £1,215 |
| £50,000 | £43,760 | £1,313 | £2,188 | £3,501 | £1,575 |
| £60,000 | £44,030 | £1,321 | £2,202 | £3,522 | £1,277 |
Eligibility thresholds 2026/27
- Earnings trigger: £10,000 a year - above this you must be auto-enrolled.
- Age range: 22 to State Pension Age.
- Lower Qualifying Earnings Threshold: £6,240 (start of contribution band).
- Upper Qualifying Earnings Threshold: £50,270 (end of contribution band; matches NI Upper Earnings Limit).
- Re-enrolment: opted-out staff must be re-enrolled every 3 years.
Frequently asked questions
- What is the UK auto-enrolment minimum contribution?
- For 2026/27 the statutory minimum total is 8% of qualifying earnings - 3% from the employer and 5% from the employee. "Qualifying earnings" is the band between the Lower Qualifying Earnings Threshold (£6,240 in 2025/26, unchanged for 2026/27 under current rule) and the Upper Qualifying Earnings Threshold (£50,270). Many employers contribute more than the 3% statutory minimum either as policy or under collective bargaining.
- Who must be auto-enrolled?
- Employers must auto-enrol employees who are (a) aged 22 or over and below State Pension Age, (b) earning above £10,000 a year, and (c) working in the UK. Employees can opt out within 30 days of being enrolled and receive a refund; opting back in is allowed any time. Employees below £10,000 but above £6,240 can request to opt in voluntarily, in which case the employer must still contribute.
- How does qualifying earnings differ from full salary contributions?
- Some employers calculate auto-enrolment contributions on the qualifying earnings band (£6,240 to £50,270 only), others on the full salary, or on basic salary excluding bonuses. The qualifying earnings approach is the statutory minimum benchmark; full-salary schemes are more generous (and produce higher pension pots over a career) but cost the employer more.
- Can I opt out of the workplace pension?
- Yes - any employee can opt out by giving notice to the scheme provider within 30 days of being enrolled. Contributions made up to that point are refunded. Outside the 30-day window the employee can still cease contributions but historic contributions remain in the pension pot. Employers must re-enrol opted-out employees every 3 years to ensure they have not changed their mind.
- Is it ever a bad idea to stay in the workplace pension?
- Almost never for working-age employees. The 3% employer contribution is "free money" that opt-outs forfeit, and the 5% employee contribution attracts Income Tax relief (often 20-42% depending on band). The only situations where opting out is sometimes considered: (a) approaching the Lifetime Allowance abolition rules / annual allowance carry-forward complications for high earners, (b) needing every penny of take-home for short-term debt repayment at high interest rates, (c) holding sufficient existing retirement assets such that further accumulation triggers tax penalties.