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 18–74 earning above the lower earnings threshold, you must auto-enrol them into a qualifying workplace pension and make minimum contributions. From April 2026, the age threshold drops to 18 and the lower earnings limit is removed.
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. From April 2026, the age threshold drops to 18 and contributions begin from the first pound earned.
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Check your business →Reviewed: 2026-06-25 · Source: official guidance