Auto Enrolment Calculator

Auto-Enrolment Thresholds 2025/26

Contribution Rates

*Based on qualifying earnings (£30,000 - £6,240 = £23,760)

Opting Out & Re-Enrolment

Opting Out

• Workers can opt out within 1 month of being enrolled
• If they opt out in time, they get a full refund of contributions
• You cannot encourage workers to opt out (this is illegal)
• Workers can opt in again at any time

Re-Enrolment

• Every 3 years, you must re-assess and re-enrol eligible workers who opted out
• Re-enrolment date is every 3 years from your staging date
• You can choose a date within a 6-month window
• Workers can opt out again if they wish

How to Use This Auto Enrolment Calculator

This calculator helps employers assess whether each worker must be automatically enrolled into a workplace pension, and what contributions are required. Follow these steps for accurate results.

Step 1: Check Eligibility Tab

Enter the worker's age, their annual earnings (including salary, overtime, bonuses, commission, and statutory payments such as SSP, SMP, SPP, and SAP), whether they work in the UK, and their worker type (employee, worker, or company director). Click "Check Eligibility" to see which category the worker falls into and what your employer duties are.

Step 2: Review Worker Categories Tab

Use this tab to understand the three main categories: Eligible Jobholders (who must be auto-enrolled), Non-Eligible Jobholders (who can opt in and receive employer contributions), and Entitled Workers (who can join but with no mandatory employer contribution). The table shows the precise age and earnings criteria for each category.

Step 3: Understand Employer Duties Tab

This tab provides a comprehensive checklist of what employers must do, from assessing the workforce and choosing a pension scheme, through to making contributions and ongoing record-keeping. Use it as a compliance guide to ensure you meet all your legal obligations under The Pensions Regulator.

Understanding Auto Enrolment: A Complete Guide

Automatic enrolment (often called auto enrolment) is a UK government initiative that requires employers to automatically enrol eligible workers into a qualifying workplace pension scheme. The scheme was introduced under the Pensions Act 2008 and became mandatory for all employers by February 2018. Here is everything you need to know for the 2025/26 tax year.

The Legal Background

Auto enrolment was phased in between 2012 and 2018, starting with the largest employers and gradually extending to all businesses, including those with just one employee. The Pensions Regulator (TPR) is responsible for enforcement. All employers, regardless of size, must comply with auto enrolment duties. Failure to do so can result in fixed penalty notices starting at £400, escalating daily penalties of £50 to £10,000 per day (depending on employer size), and potentially criminal prosecution for persistent non-compliance.

Who Counts as a Worker?

For auto enrolment purposes, a worker includes employees with an employment contract, agency workers, and certain others who provide personal service under a contract. Self-employed contractors are generally not covered. Company directors who are the sole employee of a single-director company may be exempt, but directors with an employment contract alongside other employees must comply.

How Qualifying Earnings Are Calculated

Qualifying earnings are the band of earnings on which pension contributions are calculated. For 2025/26, qualifying earnings are between the lower threshold of £6,240 and the upper threshold of £50,270 per year. So for someone earning £30,000, their qualifying earnings would be £30,000 minus £6,240 = £23,760. The minimum 8% total contribution (5% employee, 3% employer) is calculated on this band. Some employers use alternative certification basis methods that differ from qualifying earnings, but they must provide at least equivalent contributions overall.

Choosing a Pension Scheme

Employers must select a qualifying pension scheme. The most popular option for smaller employers is NEST (the National Employment Savings Trust), a government-backed scheme specifically designed for auto enrolment. Other options include The People's Pension, NOW: Pensions, and various private pension providers. The scheme must be an "automatic enrolment" qualifying scheme, meaning it meets minimum quality standards set by the government.

The Cost to Employers and Employees

The minimum total contribution is 8% of qualifying earnings, split as 3% from the employer and 5% from the employee. On qualifying earnings, contributions are calculated on the band between £6,240 and £50,270. For an employee earning £25,000 per year, the qualifying earnings are £18,760 (£25,000 minus £6,240). The employee contribution would be £938 per year (£78.17/month), and the employer contribution would be £562.80 per year (£46.90/month). Many employers choose to contribute more than the minimum 3% as a recruitment and retention benefit.

Worked Examples: Auto Enrolment Scenarios

Example 1: Full-Time Employee, Age 28, Earning £32,000

• Category: Eligible Jobholder (age 22-SPA, earning over £10,000)
• Employer duty: Must auto-enrol into workplace pension
• Qualifying earnings: £32,000 - £6,240 = £25,760
• Employee contribution (5%): £1,288 per year (£107.33/month)
• Employer contribution (3%): £772.80 per year (£64.40/month)
• Total going into pension: £2,060.80 per year

Example 2: Part-Time Worker, Age 19, Earning £8,500

• Category: Non-Eligible Jobholder (under 22, earning between £6,240 and £10,000)
• Employer duty: Must allow opt-in if requested, and contribute if they do
• If they opt in, qualifying earnings: £8,500 - £6,240 = £2,260
• Employee contribution (5%): £113 per year
• Employer contribution (3%): £67.80 per year

Example 3: Casual Worker, Age 45, Earning £5,000

• Category: Entitled Worker (age 16-74, earning under £6,240)
• Employer duty: Must provide a pension scheme to join if requested, but no employer contribution is required
• If they join, the employee funds their own contributions
• Employer has no obligation to contribute