Investing & Pensions
Workplace Pensions
A workplace pension is a way of saving for retirement arranged through your job, with contributions from you and your employer. Automatic enrolment means most employees are put into one automatically.
Key information
- Most workers are automatically enrolled by their employer
- The minimum total contribution is 8% of qualifying earnings
- Your employer must pay at least 3% of that; you typically pay the rest
- You can opt out, but you would give up your employer’s contribution
On this page
How automatic enrolment works
Under automatic enrolment, employers must put eligible staff into a workplace pension and pay in on their behalf. You are generally enrolled automatically if you are aged between 22 and State Pension age, earn above the earnings trigger (£10,000 a year), and work in the UK. Younger or lower-earning workers can usually ask to join.
Both you and your employer pay in, and you also get tax relief from the Government, which tops up your contributions. This combination is why staying in a workplace pension is, for most people, one of the most effective ways to save for later life.
How much goes in
The minimum total contribution is 8% of your qualifying earnings. Your employer must pay at least 3%, and you typically make up the difference, with tax relief included. Qualifying earnings for the 2026/27 tax year are the slice of your pay between £6,240 and £50,270.
Some employers pay more than the minimum, and some base contributions on your full salary rather than only the qualifying-earnings band, which means more goes in. Check your own scheme’s rules to see exactly how your contributions are worked out.
Opting out and your choices
You can opt out of a workplace pension, but doing so means losing your employer’s contribution and the tax relief — effectively turning down money towards your retirement. If you opt out within the first month you can usually get any contributions refunded.
Your pension pot is normally invested, so its value can go up and down. Most schemes offer a default investment fund and some let you choose from others. You can usually change how much you pay in above the minimum.
Your rights & protection
- Your employer has a legal duty to enrol eligible staff and to pay at least the minimum contribution; The Pensions Regulator oversees this.
- Your employer must not encourage or induce you to opt out of your workplace pension.
- If you think your employer is not meeting its automatic-enrolment duties, you can report it to The Pensions Regulator.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- GOV.UK, Workplace pensions — what you, your employer and the government pay (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, Automatic enrolment — an introduction (opens in a new tab). Accessed 22 Aug 2026.