Who gets enrolled
Your employer must put you into a workplace pension if you:
- are aged 22 or over and under State Pension age,
- earn more than £10,000 a year (£833 a month or £192 a week), and
- work in the UK.
If you earn less, or you’re 16 to 21, you can ask to join. If you earn more than £6,240, your employer must pay in too.
How much goes in
The legal minimums are worked out on your qualifying earnings: your pay between £6,240 and £50,270 a year in 2026/27.
| Who | Minimum | Of qualifying earnings |
|---|---|---|
| You | 4% | |
| Tax relief from the government | 1% | (added to your 4%) |
| Your employer | 3% | |
| Total | 8% |
Example: a £30,000 salary
Qualifying earnings are £30,000 − £6,240 = £23,760.
- You pay about £950 a year (£79 a month), and tax relief adds £238.
- Your employer adds £713.
That’s £1,901 a year going into your pension for £950 out of your pay. Many employers pay more than the minimum, or use your whole salary, so check your scheme.
| Part | Amount |
|---|---|
| You (4%) | £950 |
| Tax relief on your contribution (1%) | £238 |
| Your employer (3%) | £713 |
| Into your pension a year | £1,901 |
Qualifying earnings are your pay between £6,240 and £50,270. Many employers pay more than the minimum, or work it out on your whole salary.
Tax relief
Pension contributions get tax relief at your highest rate of Income Tax. How you get it depends on your scheme:
- Relief at source: you pay in from your take-home pay and the pension provider claims 20% from HMRC. Higher-rate and additional-rate taxpayers claim the rest through Self Assessment, so check you do.
- Net pay: contributions come out of your pay before tax, so you get the full relief straight away.
- Salary sacrifice: you give up part of your salary and your employer pays it into your pension instead. You save National Insurance as well as tax, and some employers add their NI saving too. From 6 April 2029, the NI saving will only apply to the first £2,000 a year you sacrifice.
Ask about your employer’s match
Many employers will match extra contributions, for example paying 6% if you pay 6%. That’s free money, and one of the best returns you can get. Ask HR or check your scheme’s booklet.
If you opt out
You can opt out within a month of being enrolled and get back what you paid. But you lose your employer’s contributions and the tax relief, and your employer must re-enrol you about every three years. Stopping contributions later is also possible, but think hard first: see how much to save for retirement.
Limits and getting your money
- You can pay in up to £60,000 a year (the annual allowance), or your earnings if lower, with tax relief.
- You can take money out from 55, rising to 57 from 6 April 2028.
- Up to 25% can usually be taken tax-free, up to £268,275 in total. The rest is taxed as income.
Changing jobs
Your old pension stays invested in your name. You can leave it, or move it to your new scheme to keep things simple. Check the fees and any guarantees before moving. If you’ve lost track of an old pension, the government’s Pension Tracing Service can help find it.
The pension calculator shows what your workplace pension could grow to.