Auto-enrolment applies to all employers with at least one employee aged 22 to State Pension age earning over £10,000 per year.

Minimum contribution rates: 8% of qualifying earnings, with at least 3% from the employer and 5% from the employee (as of current thresholds).

Qualifying earnings include salary, wages, commission, bonuses, and overtime between £6,240 and £50,270 per year (2025/26 figures).

Tax relief: Employee contributions receive tax relief at their marginal rate, and employer contributions are tax-deductible as a business expense.

You must use a qualifying pension scheme, such as NEST, The People's Pension, or a private provider registered with The Pensions Regulator.

Opt-out rules: Employees can opt out within one month of enrolment and get a refund, but you must re-enrol them every three years.

Record-keeping: Maintain records of contributions, opt-outs, and communications for six years to comply with HMRC audits.

Deadlines: Contributions must be paid to the pension scheme by the 22nd of the month after deduction from payroll.

Penalties: Failure to comply can result in fines from The Pensions Regulator, starting at £400 for fixed penalties.

Benefits for employers: Offering pension contributions can improve employee retention, provide tax efficiency, and enhance your business reputation.