Do you need to set up a workplace pension?
Pensions Act 2008 & Pensions (Extension of Automatic Enrolment) Act 2023
When this applies
If you employ anyone aged 22 to State Pension age earning over £10,000 a year, you must auto-enrol them into a qualifying workplace pension and make minimum contributions of at least 3% of their qualifying earnings. Staff outside those limits can still ask to join. The Pensions (Extension of Automatic Enrolment) Act 2023 lets the government lower the age to 18 and remove the lower earnings limit, but no regulations have been made, so current thresholds still apply.
When it does not apply
Pension auto-enrolment obligations only apply when you employ staff. No action required if you have no employees.
What is at stake
Fines from The Pensions Regulator (TPR): fixed penalty £400, escalating penalties up to £10,000 per day for continued non-compliance.
What to do
Enrol all eligible employees into a workplace pension scheme. Minimum employer contribution is 3% of qualifying earnings. For 2026/27 the earnings trigger is £10,000 and the qualifying earnings band runs from £6,240 to £50,270, unchanged from 2025/26.
Check all 33 regulations for your business
This is one of 33 checks getsorted runs. Answer around 12 questions and see your full compliance picture in three minutes. Free, no account.
Check your business →Reviewed: 2026-09-12 · Source: official guidance