How DS Burge & Co takes the stress out of your auto enrolment obligations
- We can offer a complete auto enrolment service. From implementing a workplace pension scheme with your chosen pension provider to helping assess your staff eligibility and minimum contributions.
- Once your workplace pension scheme is set-up, we can automatically enrol all qualifying members of staff, and ensure you’re meeting your legal obligations
- Where applicable we can help with employees who opt-out of auto enrolment, and we can also liaise on your behalf with any non-eligible jobholders who wish to join
- We can help you fulfil you reporting duties to The Pensions Regulator, helping register your workplace pension scheme and meeting your obligations for providing the relevant information
Need help with your workplace pensions?
Schedule a free consultation and let one of our accountants help with your auto enrolment and workplace pensions
What is auto enrolment?
Auto enrolment was introduced in the Pensions Act 2008. As a result, all employers in the UK are legally responsible for enrolling staff into a workplace pension scheme.
For enrolled employees, a small percentage of their wages are paid into a pension scheme. Extra contributions are then added on top by the employer and the government, to grow each employee’s retirement savings pot.
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Who qualifies for auto enrolment?
Auto enrolment is available for all eligible employees, even if your business only has one employee. Qualifying criteria includes employees who:
- work in the UK
- are between the age of 22 and the state pension age
- earn more than £10,000 per year; and
- aren’t already in another qualifying workplace pension scheme
The earnings thresholds are updated every year by the Department for Work and Pensions (DWP) so please note they may be subject to change in a new tax year. You can see our graphic below which has the thresholds for the 2025/26 and 2024/25 tax years (these are unchanged from the 2023/24, 2022/23 and 2021/22 tax years).
Employees do also have the option to ‘opt-out’ of auto enrolment. For example, an employee may wish to have more control and flexibility over their pension and choose to invest in a self-invested personal pension (SIPP) instead.
From an employer’s perspective, you can put off auto enrolment for up to 3 months from when a new employee joins your company. Please note that if you choose to do delay, you will need to inform your new starter(s) in writing.
Who can opt in to auto enrolment?
As an employer, part of your legal responsibilities includes inviting staff, who haven’t been automatically enrolled, to opt into your workplace pension scheme.
Staff who then opt-in are entitled to their employer contributions to their pension pot.
Employees who aren’t invited to opt-in can request in writing to join your workplace pension. These employees are entitled to join, but your requirement as an employer to contribute to their pension pot is optional.
As an employer, the obligation lays with you to determine whether a member of staff should be automatically enrolled or has a right to opt-in, as well as managing staff that request to join.
How much are auto enrolment contributions?
As an employer, there is a minimum contribution you will need to pay based on each of your employees ‘qualifying earnings.
Your employer contributions will also depend on your chosen workplace pension scheme. As an employer, you have the choice of which pension scheme you wish to run.
Some companies also pay employees additional funds on top of the minimum contributions. Employers use this as an employee benefit to help with staff retention and to recruit new employees.