UK HR Term
Auto-enrolment
Auto-enrolment is the UK legal requirement for employers to automatically enrol eligible workers into a qualifying workplace pension scheme and contribute to it on their behalf.
In plain English
Every UK employer must put eligible workers into a workplace pension and pay into it for them. Workers are enrolled automatically — they don't have to opt in — but they can choose to opt out if they want to. Introduced under the Pensions Act 2008 and rolled out in stages between 2012 and 2018, it now applies to every UK employer with at least one worker.
Who counts as eligible
A worker is eligible for auto-enrolment if they:
- are aged between 22 and the State Pension age,
- earn over the earnings trigger (£10,000 a year as of 2026), and
- ordinarily work in the UK.
Workers outside that bracket can usually still opt in voluntarily, and the employer may still be required to contribute.
Minimum contributions
The minimum total contribution is 8% of qualifying earnings, made up of:
- 3% from the employer (minimum), and
- 5% from the worker (including tax relief).
Employers can — and many do — pay more than the minimum. Both contributions are calculated on the qualifying earnings band, not on full salary.
What employers must do
- Set up a qualifying workplace pension scheme (NEST is the government default).
- Assess every worker on every payroll date.
- Enrol new eligible workers within the joining window.
- Re-enrol any opted-out workers every three years.
- Keep records and complete a declaration of compliance with The Pensions Regulator.
How Luna HR handles this
Luna HR Core — store pension scheme details on the employee record