PENSION
Auto-enrolment, explained.
Every UK employer must enrol eligible workers into a workplace pension. See the 2026 minimum rates, the opt-out window, and what happens if you do nothing.
Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or HMRC.
Related
Common questions
What are the 2026 auto-enrolment rates?
The legal minimum is 8 percent of qualifying earnings: 5 percent from the employee (4 percent + 1 percent tax relief at source) and 3 percent from the employer. Many employers offer more generous terms - check your scheme. Qualifying earnings are between £6,240 and £50,270 a year in 2026/27.
Can I opt out?
Yes. Within one month of being enrolled, you can opt out via your scheme provider and receive a full refund of any contributions taken. After the first month, contributions stop on opting out but you cannot retrieve past contributions. Re-enrolment is automatic every 3 years if you remain eligible.
What counts as qualifying earnings?
For 2026/27, the band is £6,240 to £50,270 a year. Auto-enrolment contributions apply only to earnings within this band, not your full salary. Some employers contribute on full earnings; check your scheme.
Will my contribution increase automatically?
No. Auto-enrolment minimums have been at 8 percent total since April 2019 and have not changed. Your employer or scheme can opt to increase, but the legal minimum is unchanged for 2026/27. You can voluntarily contribute more at any time via salary sacrifice or AVCs.
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Open the toolPayslipIQ 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.