Auto-enrolment: the essentials

If you employ staff, you have a legal duty to put eligible workers into a workplace pension and pay into it. Here's the one-page version.

The minimum: 8% of qualifying earnings

Split between you and your employee.

3%You (employer)

5%Employee (incl. tax relief)

Total minimum contribution 8%

Applied to qualifying earnings — the slice of pay between £6,240 and £50,270 (2026/27). You must pay at least 3%; if you pay more, the employee can pay less, as long as the total reaches 8%.

Who you must enrol

Every member of staff falls into one of three groups, based on age and earnings:

Eligible jobholder

Aged 22 to State Pension age and earning over £10,000. You must automatically enrol them and contribute.

Non-eligible jobholder

Earning between £6,240 and £10,000 — or aged 16–21 / over State Pension age and earning above £10,000. They can ask to opt in, and you must then contribute.

Entitled worker

Aged 16–74 earning under £6,240. They can ask to join, but you're not required to contribute.

Key thresholds (2026/27)

£10,000Earnings trigger — earn above this and an eligible worker must be auto-enrolled.
£6,240 – £50,270Qualifying earnings band — the pay range that contributions are calculated on.
FrozenAll three figures are unchanged again for 2026/27.

Your ongoing duties

Assess your staff every pay period and enrol anyone who becomes eligible.
Pay at least the minimum contribution on time, every time.
Handle opt-outs — staff who opt out within a month get their contributions refunded.
Re-enrol eligible staff who previously opted out roughly every three years, and re-declare compliance to The Pensions Regulator.
Keep records, and never encourage or induce staff to opt out.

A trap worth avoiding

Because the thresholds are frozen while wages rise, more of your lower-paid staff drift into scope each year — budget for it. And watch the lower limit: the £6,240 auto-enrolment figure is not the same as the National Insurance lower earnings limit. Using the wrong one is a common way employers underpay contributions.

Please note

This is general guidance on automatic enrolment duties for the 2026/27 tax year, not advice on choosing a pension scheme. PTL Bookkeeping & Accounting can assess your workforce, run the right contributions through your payroll, and keep you compliant with The Pensions Regulator. Thresholds and rules can change — we'll keep you current.

Let us run auto-enrolment for you

We'll handle the assessments, contributions and re-declarations through payroll — so you stay compliant without the admin.

Talk to PTL