Pension Auto-Enrolment Calculator

Auto-enrolment is a legal requirement for UK employers to automatically enrol eligible workers into a workplace pension scheme and make contributions. It was introduced to help more people save for retirement. All employers, regardless of size, must comply.

An eligible jobholder is a worker aged between 22 and state pension age (currently 66) who earns more than the auto-enrolment earnings trigger (currently £10,000 per year). These workers must be automatically enrolled into a qualifying pension scheme.

The minimum employer contribution is 3% of qualifying earnings. Qualifying earnings are the portion of salary between the lower threshold (£6,240) and the upper threshold (£50,270) for 2025/26. Many employers choose to contribute more than the minimum.

Yes, employees can opt out within one month of being enrolled. If they opt out, they receive a full refund of any contributions deducted. However, the employer must re-enrol them approximately every 3 years. Employers must not encourage or incentivise employees to opt out.

Employers can postpone auto-enrolment for up to 3 months from the date the worker becomes eligible. They must write to the worker within 6 weeks of the postponement start date explaining that auto-enrolment has been postponed and giving the date it will take effect.

Qualifying earnings are the band of earnings on which minimum pension contributions are calculated. For 2025/26, contributions are due on earnings between £6,240 (lower threshold) and £50,270 (upper threshold). Earnings below or above these limits are not counted for minimum contribution purposes.

Part-time workers qualify if they meet the age and earnings criteria. If a part-time worker earns less than £10,000 per year, they are a non-eligible jobholder or entitled worker and can choose to opt in. If they earn over £10,000, they are an eligible jobholder and must be auto-enrolled.

NEST (National Employment Savings Trust) is a government-backed pension scheme designed to support auto-enrolment. Employers are not required to use NEST — they can choose any qualifying pension scheme. However, NEST is required to accept any employer, making it a useful default option for small businesses.

Every 3 years (approximately), employers must re-enrol eligible workers who have previously opted out. The re-enrolment date is chosen by the employer and must be within a 6-month window around the 3-year anniversary of their staging date. Workers can opt out again after re-enrolment.

The Pensions Regulator (TPR) can issue fixed penalty notices of £400 and escalating daily penalties ranging from £50 per day for micro employers to £10,000 per day for employers with 500+ workers. In serious cases, TPR can pursue criminal prosecution. Compliance is not optional.