How much goes into my workplace pension?

What auto enrolment is

Auto enrolment means your employer must put you into a workplace pension and pay into it. You do not have to ask. Money goes in from your pay, your employer adds more, and the government adds tax relief.

Who is enrolled automatically

Your employer must enrol you if you:

• are aged 22 to State Pension age
• earn at least £10,000 a year
• are classed as a "worker"
• usually work in the UK

If you do not meet these rules, you can usually still ask to join, and your employer cannot refuse. Your employer only has to pay in if you earn more than £520 a month (£120 a week, or £480 over 4 weeks).

How much goes in

These minimums have applied since April 2019. Your scheme may pay more.

In most schemes, the percentages are worked out on "qualifying earnings". These are your earnings between £6,240 and £50,270 a year, before tax.

Worked examples

Example 1: salary of £30,000 a year.

• Qualifying earnings: £30,000 minus £6,240 = £23,760
• Employer (3%): £712.80 a year
• You (5%): £1,188.00 a year
• Total (8%): £1,900.80 a year, about £158.40 a month

Example 2: salary of £20,000 a year.

• Qualifying earnings: £20,000 minus £6,240 = £13,760
• Employer (3%): £412.80 a year
• You (5%): £688.00 a year
• Total (8%): £1,100.80 a year, about £91.73 a month

Tax relief and salary sacrifice

• Tax relief. If you pay Income Tax, the government adds money to your pension. Even if you do not pay Income Tax, you still get an extra payment if your scheme uses "relief at source".
• Salary sacrifice. You give up part of your salary and your employer pays it straight into your pension. This may reduce tax and National Insurance for you and your employer. Ask your employer if they offer it.

Leaving the scheme

• You can opt out by contacting your pension provider. Your employer must tell you how.
• If you opt out within 1 month of being enrolled, you get back the money you paid in.
• After that, money paid in usually stays in your pension until you retire.
• Your employer must enrol you again about every 3 years. They will tell you in writing. If you opted out in the 12 months before that date, they do not have to.

Related guides

• How do I find a lost pension?
• What is the Pension Tracing Service?
• How does pension tax relief work?
• Do I pay tax on my pension?

Where this comes from

• Workplace pensions: what you, your employer and the government pay (GOV.UK)
• Workplace pensions: joining a workplace pension (GOV.UK)
• Workplace pensions: if you want to leave your workplace pension scheme (GOV.UK)