Workplace pensions and auto-enrolment

If you earn less than £10,000 you can usually still join, and your employer cannot refuse.

Who is enrolled automatically

Your employer must automatically enrol you into a pension scheme and make contributions to your pension if all of the following apply:

• you’re classed as a ‘worker’
• you’re aged between 22 and State Pension age
• you earn at least £10,000 per year
• you usually (‘ordinarily’) work in the UK (read the detailed guidance if you’re not sure)

You can usually still join their pension if you want to. Your employer cannot refuse.

What goes in

The minimum your employer pays is 3%, you pay 5%, a total minimum contribution of 8%.

In most automatic enrolment schemes, you’ll make contributions based on your total earnings between £6,240 and £50,270 a year before tax.

Your employer does not have to contribute to your pension if you earn £520 a month, £120 a week or £480 over 4 weeks, or less.

Tax relief

The government will usually add money to your workplace pension in the form of tax relief if you pay Income Tax and you pay into a personal pension or workplace pension.

Even if you do not pay Income Tax, you’ll still get an additional payment if your pension scheme uses ‘relief at source’ to add money to your pension pot.

Opting out

If you opt out within a month of your employer adding you to the scheme, you’ll get back any money you’ve already paid in.

You may not be able to get your payments refunded if you opt out later - they’ll usually stay in your pension until you retire.

Pension scams

Some companies offer to help you get money out of your pension before you’re 55. Taking your pension early in this way could mean you pay tax of up to 55%.

Lost track of an old pension? See find a lost pension. In Northern Ireland, see workplace pensions in Northern Ireland.

Common questions

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