Auto-enrolment applies to all employers with at least one employee aged 22 to State Pension age earning over £10,000 per year.

Minimum contribution rates: Employers must pay at least 3% of qualifying earnings, with total contributions (employer and employee) at 8% as of 2026.

Qualifying earnings include salary, bonuses, and overtime between £6,240 and £50,270 per year (2026 thresholds, adjusted annually).

Tax relief: Employer contributions are generally tax-deductible as a business expense, reducing your corporation tax bill.

National Insurance savings: Employer contributions don't attract employer National Insurance, providing additional cost savings.

You must automatically enrol eligible employees, but they can opt out; you must re-enrol them every three years if they've opted out.

Record-keeping: Maintain records of contributions, opt-outs, and communications for at least six years for compliance checks.

Choose a pension scheme: Options include NEST, The People's Pension, or private providers; ensure it's compliant and suits your workforce.

Communicate with employees: Provide clear information about the pension scheme, contributions, and their rights within set deadlines.

Review contributions annually: Adjust for salary changes, new hires, or regulatory updates to avoid penalties.