Category: Pensions · Reviewed by Matt Bartlett, Director · Founder · Last reviewed 2026-06-10
Auto-enrolment is the statutory requirement under the Pensions Act 2008 on UK employers to enrol their “eligible jobholders” automatically into a qualifying workplace pension scheme, deduct minimum employee contributions from pay, and pay minimum employer contributions on the employee’s behalf. The requirement was phased in by employer size between October 2012 and February 2018, and from October 2017 has applied to all employers regardless of size or new business start date.
Category: Pensions Also known as: Automatic enrolment, AE Statutory basis: Pensions Act 2008 Related concepts: Workplace pension, Pensions Act 2008, NEST National Employment Savings Trust, The Pensions Regulator
An “eligible jobholder” under auto-enrolment rules is an employee aged at least 22, below state pension age, earning at least the annual earnings trigger (£10,000 for 2024/25 unchanged from 2014/15), and working ordinarily in the UK. The employee is enrolled automatically and may opt out within a one-month opt-out window for a refund; opt-out preserves the right to opt back in.
Pensions Act 2008 sections 1–99 establish the framework. Detail is in the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 (SI 2010/772). The minimum contribution levels were phased in: 2% total (1% employer / 1% employee) from October 2012, increasing through 5% total (2%/3%) by April 2018, to 8% total (3% employer / 5% employee inclusive of tax relief) from April 2019. Enforcement is by The Pensions Regulator with civil and criminal sanctions for non-compliance.
The duty applies to every UK employer. Categories of worker: eligible jobholders (must be auto-enrolled); non-eligible jobholders (can opt in with statutory minimum contributions); entitled workers (can opt in but employer not required to contribute). Re-enrolment is required every three years for opted-out eligible jobholders.
A start-up employer has its duties start date and uses the NEST scheme. It enrols its three eligible jobholders at 5% employee / 3% employer of qualifying earnings (£6,240 – £50,270 band for 2024/25). The Pensions Regulator registers the scheme. One employee opts out within the first month; the contribution is refunded. The employer must re-enrol the opted-out employee in 2027 unless they have already opted back in.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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