This post covers automatic enrolment for small employers and the staff they enrol: who has to be put in a scheme, the 2026/27 earnings thresholds, the minimum contributions, a monthly worked example, what appears on the payslip, and the duties that follow, from the declaration of compliance to re-enrolment every three years. The thresholds come from The Pensions Regulator; the duties from GOV.UK.
Who must be enrolled
Your duties start on the day your first member of staff starts work. From then, you must enrol and pay into a workplace pension for every worker who is aged between 22 and State Pension age, earns at least £10,000 a year, and usually works in the UK.
| Worker | Enrolled? | Employer must pay in? |
|---|---|---|
| Aged 22 to State Pension age, earning £10,000 or more | Yes, automatically | Yes |
| Earning more than £6,240 but under £10,000 (more than £520 a month) | Only if they ask to join | Yes |
| Earning £6,240 or less (£520 a month, £120 a week) | Only if they ask to join | No |
Workers outside the 22-to-State-Pension-age range aren't enrolled automatically, but can usually ask to join. You can't refuse a request to join, and you must put the worker into the scheme within one month of getting it. If someone becomes eligible because their age or earnings change, write to them within six weeks of the day they meet the criteria.
Earnings thresholds for 2026/27
The government kept the thresholds at their 2025/26 levels. Because pay is checked against them each payday, The Pensions Regulator publishes them for every pay period:
| Pay period | Lower level of qualifying earnings | Earnings trigger | Upper level of qualifying earnings |
|---|---|---|---|
| Weekly | £120 | £192 | £967 |
| Fortnightly | £240 | £384 | £1,934 |
| Four-weekly | £480 | £768 | £3,867 |
| Monthly | £520 | £833 | £4,189 |
| Yearly | £6,240 | £10,000 | £50,270 |
The earnings trigger decides who must be enrolled. The lower and upper levels mark out qualifying earnings, the band of pay the minimum contributions are worked out on. Earnings include salary, bonuses, overtime and statutory pay such as SSP and SMP.
Minimum contributions
The legal minimum has been 8% of qualifying earnings since April 2019: at least 3% from the employer, with the employee paying the rest, normally 5% including tax relief. An employer can pay more than 3%, and the employee can then pay less, as long as the total reaches 8%.
Worked example: £2,000 a month
An employee aged 30 earns £2,000 a month on tax code 1257L, category A. Qualifying earnings are £2,000 minus £520, which is £1,480. The employee's 5% is £74.00 and the employer's 3% is £44.40, so £118.40 goes into the pension each month.
| Relief at source scheme | Net pay arrangement | |
|---|---|---|
| Taken from the employee's pay | £59.20 after tax | £74.00 before tax |
| Added by HMRC via the provider | £14.80 | — (relief through lower PAYE) |
| Employer contribution | £44.40 | £44.40 |
| Income Tax | £190.20 | £175.40 |
| National Insurance | £76.16 | £76.16 |
| Take-home pay | £1,674.44 | £1,674.44 |
For a basic rate taxpayer the two methods end in the same take-home pay; they only differ in where the 20% relief appears. Higher rate taxpayers in a relief at source scheme claim the extra relief through Self Assessment or HMRC's online service.
What the payslip shows
The employee's contribution is a deduction and goes on the payslip each period, usually labelled with the scheme, for example "Pension (NEST) £59.20" or "Pension (net pay) £74.00". The employer's contribution isn't taken from pay, but many payslips show it as a memo line so the employee can see the full amount going in. In a salary sacrifice scheme the employee's share shows as a reduction to pay instead.
Opting out
A worker can leave the scheme. If they opt out within the first month, the opt-out window, you must refund their contributions within one month. If they leave later, the money already paid stays in their pension until they retire. Employers mustn't encourage or force anyone to opt out, and you must keep opt-out requests for four years.
Employer duties and deadlines
- Complete the declaration of compliance with The Pensions Regulator within five months of your duties start date.
- Deduct contributions from pay and pay them into the scheme by the 22nd of the following month (the 19th if you pay by cheque).
- Keep records for six years, and opt-out requests for four years.
- Re-enrol eligible staff who have left the scheme every three years from your duties start date, write to them within six weeks of the re-enrolment date, and complete a re-declaration of compliance each time.
- Expect a fine if you pay late, don't pay the minimum, or don't complete the declaration on time.
This is general information about UK rules for the 2026/27 tax year, as published on GOV.UK on 13 October 2026. It is not tax, pensions or legal advice.
Questions
What is the auto enrolment threshold for 2026/27?
The earnings trigger is £10,000 a year (£833 a month, £192 a week). Contributions are worked out on qualifying earnings between £6,240 and £50,270 a year.
How much do employers have to pay into an auto enrolment pension?
At least 3% of qualifying earnings, as part of a minimum total of 8%. On £2,000 a month that's £44.40 from the employer.
Can an employee opt out of auto enrolment?
Yes. If they opt out within the first month they get their contributions back, refunded within one month. After that, contributions already paid stay in the pension.
Do I need to auto enrol someone under 22?
Not automatically, but they can usually ask to join and you can't refuse. If they earn more than £520 a month (£6,240 a year) you must pay employer contributions for them too.
Sources
- The Pensions Regulator: Earnings thresholds (2026 to 2027)
- Department for Work and Pensions: Review of the automatic enrolment earnings trigger and qualifying earnings band for 2026/27
- GOV.UK: Workplace pensions, what employers must do
- GOV.UK: Workplace pensions for employers (managing the scheme, opt-outs, re-enrolment)
- GOV.UK: Workplace pensions, joining a workplace pension
- GOV.UK: Workplace pensions, what you, your employer and the government pay
- The Pensions Regulator: Declare your compliance
- GOV.UK: Tax on your private pension, pension tax relief
- HMRC: Rates and thresholds for employers 2026 to 2027
Sources checked 26 October 2026. This article explains how pay documents work; it is not tax or legal advice.
