Cloud UK Payroll Software
Stay on Track: Auto-Enrolment and Your Employer Duties in 2025/26
Elena Segura
Cofounder
May 19, 2025
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Stay on Track: Auto-Enrolment and Your Employer Duties in 2025/26
If you’re an employer in the UK, you’ve probably heard of auto-enrolment—a government initiative designed to help more people save for retirement. But what exactly are your duties, and how do they apply to different workers?
Here’s a straightforward overview of what you need to know for the 2025/26 tax year.
When Do Employer Duties Begin?
Your auto-enrolment start date begins when your first employee starts work. From that point, you are legally required to assess your workforce and meet specific pension obligations.
Understanding Your Workforce
You must assess each worker to determine their category. The three types are:
Worker Type | Criteria (2025/26) | Duty Overview |
|---|---|---|
Eligible jobholders | Aged 22 to state pension age, earning above £10,000 | Must be automatically enrolled into a pension scheme |
Non-eligible jobholders | Aged 16–21 or SPA–74, earning over £6,240 up to £10,000 | Can opt in; you must enrol them and contribute |
Entitled workers | Aged 16–74, earning £6,240 or less | Can join a pension; no obligation to contribute |
Your Responsibilities by Worker Category
Your specific actions depend on the type of worker. Below is a clear summary of what’s required:
Worker Category | Your Key Responsibilities |
|---|---|
Eligible jobholder | - Enrol them automatically into a qualifying pension scheme. - Deduct their contributions and pay your share into the scheme. - Handle opt-out requests and arrange any refunds. - Reassess and re-enrol them approximately every three years if they previously left the scheme. - Keep accurate records of all processes and provide them to The Pensions Regulator (TPR) if required. |
Non-eligible jobholder | - Inform them of their right to opt in to a pension plan. - Set up scheme membership if they choose to opt in. - Make deductions and pay your contributions once they’re enrolled. - Deal with any opt-out notices and issue refunds as needed. - Monitor their age and earnings regularly. - Maintain records of any opt-ins or opt-outs, and share them with TPR if asked. |
Entitled worker | - Let them know about their right to join a pension arrangement. - Put them into a scheme if they ask to join. - Deduct their payments and send to the provider (you’re not required to contribute unless you decide to). - Track changes in their age or income. - Document all steps taken and supply details to TPR when requested. |
Can I Delay Enrolment?
Yes—you can use postponement to defer assessment for up to three months, which can be useful for temporary staff or probation periods. However:
You must issue a postponement notice within six weeks and one day.
At the end of postponement, you must assess and act accordingly.
How Does Auto-Enrolment Impact Your Pension Scheme?
As an employer, you’re required to confirm that your pension arrangement meets legal standards. This is done by submitting a compliance declaration—and it must be completed within five months from the date your duties begin.
You’ll also need to reconfirm your scheme’s status every three years. If you already have a pension plan in place, you may not need to set up a new one—provided it meets the official criteria.
To qualify, your scheme must satisfy the following:
Auto-enrolment framework rules
Eligibility conditions for workers
Contribution standards based on earnings
Minimum Contribution Levels (for 2025/26)
To comply with the law, contributions must be based on qualifying earnings—which fall between £6,240 and £50,270.
These earnings include:
Base pay
Overtime, commissions, and bonuses
Statutory sick pay
Parental leave pay (maternity, paternity, adoption)
The total minimum contribution must be 8% of qualifying earnings, of which at least 3% must come from the employer.
Minimum total | Employer share | Employee contribution |
|---|---|---|
8% | At least 3% | The employee must make up the difference under a valid agreement |
Meeting these thresholds ensures your scheme qualifies for auto-enrolment and keeps you compliant with your legal responsibilities.
What If I Do Nothing?
Non-compliance is not optional. TPR may:
Issue fines and penalties
Pursue legal enforcement
Require back payments of contributions (including interest)
You must not encourage staff to opt out or suggest this during the hiring process.
Final Thoughts
Auto-enrolment is a key part of supporting long-term financial wellbeing for your employees. By understanding your duties and keeping accurate records, you can stay compliant and support your team effectively.
For more details, visit The Pensions Regulator.
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