Auto-Enrolment Overview – For Employees

You might have been automatically enrolled into a pension, or your employer might have mentioned Auto-Enrolment to you. But what does it mean?

What is Auto-Enrolment

Auto-enrolment, sometimes referred to as Workplace Pensions, is a Government initiative, whereby all employers in the UK must put certain staff into a workplace pension.

It’s an opportunity to boost your retirement savings with the benefit that both your employer and the Government are contributing.

How does it actually work

Under Auto-Enrolment, eligible employees are automatically put into a workplace pension scheme, although they can still choose to opt-out.

You will be automatically put into the pension scheme if you are between 22 years old and state pension age and earn above £10,000* a year. Therefore, you don’t need to do anything.

What are the benefits

With Auto-Enrolment, you will be building a pension pot for your retirement without even realising. You will also get extra contributions from your employer and from the Government.

Under the Auto-Enrolment minimums, you contribute 5%* of your Qualifying Earnings and your employer contributes 3%*. Some employers might contribute more or even match your contributions.

The Government also “contributes” into your pension pot, as you will not be paying tax on pension contributions (see tax relief).

What if I am not on the scheme

If you earn less than £10,000* but more than £6,240*, you will not be automatically put into the pension scheme. However, you can ask to join your employer’s workplace pension scheme. Your employer can’t refuse and must also contribute.

If you earn less than £6,240*, you still have the right to join the pension scheme. In that case, your employer doesn’t have to contribute.

Check how much you have contributed

You can easily check how much you and your employer have put into your workplace pension scheme by using the Husky for Everyone app. You can also see the details on the workplace pension scheme. If you don’t have access to it, contact us.

If you are thinking of contributing more, check this article to know how much you can contribute.

*These are the values for 2021/22 and might change in the future.

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