If you're employed in the UK, meet a minimum age, and earn above a set threshold, your employer is required to automatically enrol you into a workplace pension — without you having to apply, choose a provider, or do anything at all. Most people are in one already and have never actively chosen it.
Who gets enrolled
Eligibility is generally based on age and earnings bands that are reviewed periodically by The Pensions Regulator, so check gov.uk or The Pensions Regulator's site for the exact current thresholds rather than relying on a fixed number here. If you fall outside the automatic criteria — because you're younger, older, or earn less than the threshold — you can usually still ask to be enrolled voluntarily.
Where the money actually comes from
A workplace pension contribution is typically built from three sources, not just your own pay packet:
| Source | Illustrative share |
|---|---|
| Your contribution | e.g. 4% of qualifying earnings |
| Employer contribution | e.g. 3% of qualifying earnings |
| Tax relief added by the government | e.g. 1% of qualifying earnings |
The exact percentages depend on your scheme and the current legal minimums, but the structure — you, your employer, and tax relief all contributing — is the same across most workplace pensions.
Defined contribution vs defined benefit
Most workplace pensions set up today are defined contribution: you and your employer pay in, it's invested, and your eventual pot depends on what was paid in and how the investments performed. Older defined benefit schemes instead promise a specific income in retirement, usually based on salary and years of service, with the employer carrying the investment risk rather than you. If you're not sure which type you have, your scheme's annual statement will say.
Opting out
You can opt out of a workplace pension, and your employer cannot pressure you either way. The trade-off is straightforward: opting out means losing both the employer's contribution and the tax relief on your own, not just your own slice. That doesn't make staying in automatically the right call for everyone's circumstances, but it's the cost worth weighing up before deciding.
Curious where your current contributions might land by retirement, under simplified assumptions? Try our retirement projector.
Frequently asked questions
Can you opt out of a workplace pension?+
Yes — auto-enrolment enrols you automatically, but you can opt out, usually by contacting your pension provider or employer within a set window after enrolment. Be aware that opting out means giving up your employer's contributions and the tax relief, which is effectively turning down part of your pay package. Think carefully before doing it.
What do EE and ER mean on my payslip?+
“EE” stands for employee and “ER” for employer. So “EE pension” is the amount you contributed from your own pay, and “ER pension” is what your employer put in on top. Seeing both is normal and a good sign — the ER figure is money you'd lose if you opted out.
What is pensionable pay?+
Pensionable pay (or pensionable earnings) is the portion of your salary used to work out pension contributions. It isn't always your whole salary — some schemes exclude things like overtime or bonuses, or only count earnings above a threshold. Your scheme's rules or your HR team can tell you exactly what counts.
What happens to my workplace pension when I leave a job?+
The money stays yours — it doesn't disappear. The pot simply stays with that provider (often called a “deferred” pension) and continues to be invested, though you and your old employer stop contributing. You can usually leave it where it is or transfer it into another pension later.
Is overtime or holiday pay pensionable?+
It depends entirely on your scheme's definition of pensionable pay. Some schemes include overtime and bonuses, many don't. Check your scheme's rules — this is one of the most common sources of confusion on a payslip.
How much does my employer have to contribute?+
Under auto-enrolment there are minimum contribution levels set by law, split between you, your employer and tax relief. Many employers contribute more than the minimum, and some will match higher contributions from you — which is one of the most valuable things you can take advantage of. Check what your employer offers.