Written by the TaxTune Editorial Team · Reviewed by our qualified accountants · Updated for 2026
The quick answer Auto enrolment requires employers to put eligible staff into a workplace pension and contribute to it. Eligible workers are aged 22 to state pension age earning over £10,000 a year. Minimum contributions are 8% of qualifying earnings in total, of which at least 3% comes from the employer.

Your duties, step by step

  1. Assess your staff. Work out who is eligible, based on age and earnings, each pay period.
  2. Enrol eligible workers. Put them into a qualifying pension scheme automatically.
  3. Contribute. Pay at least 3% employer contribution, with the employee paying the rest to reach 8% of qualifying earnings.
  4. Manage opt outs. Employees can opt out within a set window and be refunded, but you cannot encourage them to.
  5. Declare compliance. Complete a declaration of compliance with The Pensions Regulator, and re enrol eligible staff every 3 years.

Why it matters from the first employee

Auto enrolment duties apply from your first eligible member of staff, not once you reach a certain size. Getting the assessment, contributions or declaration wrong can bring penalties from The Pensions Regulator, so it needs to run correctly alongside payroll.

Pension duties feeling like a maze?

Auto enrolment sits on top of payroll and trips up many small employers. TaxTune sets up your scheme, assesses staff each period, and handles contributions and compliance.

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We set up and run auto enrolment alongside your payroll, assess staff, manage contributions and opt outs, and keep you compliant with The Pensions Regulator. Fixed fee.

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Frequently asked questions

What is auto enrolment?

It is the legal duty on employers to automatically put eligible staff into a workplace pension and contribute to it. Duties apply from your first eligible employee.

Who has to be enrolled?

Workers aged 22 to state pension age who earn more than £10,000 a year must be enrolled. Others can ask to join, and some are entitled to an employer contribution if they do.

How much do employers contribute?

The minimum total contribution is 8% of qualifying earnings, of which at least 3% must come from the employer, with the employee making up the rest.

Can employees opt out?

Yes, within a set opt out window, and they are refunded any contributions. Employers must not encourage opting out, and eligible staff are re enrolled every 3 years.

What if I get auto enrolment wrong?

The Pensions Regulator can issue notices and penalties for failing to assess, enrol, contribute or declare compliance correctly, so it needs to run properly alongside payroll.