Auto-Enrolment (Workplace Pension)
UK law requiring employers to automatically enrol eligible staff into a pension, with both employer and employee contributing.
Auto-enrolment requires UK employers to place eligible employees into a workplace pension automatically, with minimum contribution percentages from both employer and employee, calculated on "qualifying earnings" — a band of salary, not the full amount. Employees can opt out, but opting out also gives up the employer's contribution entirely.
Worked Example
On qualifying earnings within the band, a typical minimum split is 5% from the employee and 3% from the employer — opting out doesn't just stop your own contribution, it forfeits that employer 3% too.
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