Ask PayslipIQ · Last reviewed 2026-05-08
What is pension auto-enrolment?
Auto-enrolment is the UK rule that requires most employers to enrol eligible workers into a workplace pension automatically. You qualify if you are aged 22 or over, under State Pension age, earn over £10,000 a year, and work in the UK. You can opt out within a month if you wish.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.
If you opt out within the first month, any contributions are refunded. Opt out later and the contributions stay in the pension; you cannot reclaim them.
Auto-enrolment minimum contributions in 2026/27 are 8% of qualifying earnings: 5% from you (including 1% basic-rate tax relief) and 3% from your employer.
Even if you opt out, your employer must re-enrol you roughly every three years. You then have another month to opt back out if you choose.
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Reviewed by PayslipIQ Editorial. Sources cited where applicable.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.