Auto-enrolment, without the jargon
Every employer duty — who you must enrol, what you must pay, the letters, the deadlines, and the three-year cycle — on one page.
The three worker categories
Assessment happens every pay period against age and earnings — people move between categories as pay changes.
| Category | The test (2026-27) | Your duty |
|---|---|---|
| Eligible jobholder | Aged 22 to State Pension age, earning over £10,000/year | Must be automatically enrolled; you must contribute |
| Non-eligible jobholder | Aged 16–74, earning £6,240–£10,000 — or over £10,000 but outside the age band | Can opt in; if they do, you must contribute |
| Entitled worker | Aged 16–74, earning under £6,240/year | Can ask to join; you must provide a scheme but need not contribute |
Thresholds verified against The Pensions Regulator, 5 July 2026 — full figures on our statutory rates page.
The duties, in order
1 · Day one
Duties start when your first employee starts. Pick a qualifying scheme (NEST is the government-backed default many small employers use).
2 · Each pay run
Assess everyone against age and earnings, enrol eligible jobholders, deduct and pay contributions — 8% total, employer at least 3%.
3 · Within 5 months
Complete the declaration of compliance with The Pensions Regulator — mandatory even if nobody qualified.
4 · Every 3 years
Re-enrol eligible leavers/opt-outs and submit the re-declaration. Diarise it — it applies even when nothing changes.
Auto-enrolment questions, answered plainly
What are the auto-enrolment thresholds for 2026-27?
The earnings trigger is £10,000 a year — earn over that (aged 22 to State Pension age) and you must be enrolled automatically. Contributions are calculated on qualifying earnings between £6,240 and £50,270. These values are unchanged from recent years, confirmed by the DWP’s 2026/27 review.
How much do employer and employee each pay?
The legal minimum is 8% of qualifying earnings in total, of which the employer must pay at least 3%. In the common set-up the employee contributes 5% (usually with tax relief) and the employer 3% — but any split works as long as the employer covers 3%+ and the total reaches 8%.
When do auto-enrolment duties start for a new employer?
The moment your first member of staff starts work. You must have a qualifying scheme, assess and enrol eligible staff, write to everyone explaining what applies to them, and complete a declaration of compliance with The Pensions Regulator within five months of your duties start date — required even if nobody qualified for enrolment.
What is postponement?
You can delay assessing a worker for up to three months — commonly used for new joiners or short-term staff. You must write to tell them within six weeks, and they keep the right to opt in during the postponement. It defers assessment, not the duty itself.
How do opt-outs work?
An enrolled employee can opt out within one month of enrolment and get a full refund of contributions. After the window they can still leave the scheme, but the money generally stays invested until retirement. Inducing staff to opt out is unlawful — offers or pressure to leave the scheme can bring Pensions Regulator penalties.
What is re-enrolment?
Every three years you must put back in the eligible staff who previously opted out or left (with narrow exceptions), and submit a re-declaration of compliance. It applies even if nobody needs re-enrolling — the re-declaration is still due.
Plain-English guidance, not financial advice.
Assessment, contributions and letters — automatic.
Blankitt HR assesses every worker each pay run, calculates contributions on qualifying earnings, and integrates with NEST and People's Pension.