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 of £10,000 a year. These workers must be automatically enrolled into a qualifying pension scheme.

A non-eligible jobholder is not enrolled automatically but has the legal right to opt in, and if they do the employer must contribute exactly as it would for an eligible jobholder. Two groups qualify: workers aged 16 to 74 earning more than £6,240 but not more than £10,000 a year, and workers aged 16 to 21 or between State Pension age and 74 who earn more than £10,000. Employers must write to these workers to tell them about the right to opt in.

An entitled worker is aged 16 to 74 and earns £6,240 a year or less. They can ask to join a pension scheme and the employer must arrange one for them, but the employer is not required to make contributions. This is the only category where the employer has no contribution duty.

The minimum total contribution is 8% of qualifying earnings, of which the employer must pay at least 3%. The worker makes up the balance, normally 5% including tax relief. Qualifying earnings are the portion of pay between the lower level of £6,240 and the upper level of £50,270 for 2025/26. Many employers choose to contribute more than the minimum, in which case the worker's share can be reduced as long as the total stays at 8% or above.

It depends on which arrangement your scheme uses, and the two work very differently. Under a net pay arrangement your contribution is deducted from your gross pay before income tax is worked out, so you get full relief at your marginal rate straight away and nothing needs to be claimed. Under relief at source — used by NEST and most master trusts — your contribution comes out of your pay after tax, the provider then reclaims 20% basic-rate relief from HMRC and adds it to your pot, and higher-rate and additional-rate taxpayers must claim the extra 20% or 25% themselves through Self Assessment. Neither arrangement saves National Insurance; only salary sacrifice does that. Check your payslip or ask your payroll team which one applies to you.

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 (the lower level) and £50,270 (the upper level). Earnings below or above these limits are not counted for minimum contribution purposes.

Part-time workers are assessed on exactly the same age and earnings criteria as anyone else. A part-time worker earning more than £10,000 and aged 22 to State Pension age is an eligible jobholder and must be auto-enrolled. One earning more than £6,240 but not more than £10,000 is a non-eligible jobholder: they are not enrolled automatically, but they can opt in and the employer must then contribute. Only a worker earning £6,240 or less is an entitled worker, where the employer need not contribute.

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.