If you employ people in the UK, you have duties under automatic enrolment: the system that puts eligible workers into a workplace pension unless they choose to leave. Three earnings figures sit behind those duties, and they are worth knowing even if your payroll software does the sums. This checklist sets out what The Pensions Regulator says for the 2026/27 tax year.
The three figures
The Pensions Regulator publishes the thresholds each year. For 2026/27 they are the same as for 2025/26:
- Earnings trigger: £10,000 a year.
- Lower limit of the qualifying earnings band: £6,240 a year.
- Upper limit of the qualifying earnings band: £50,270 a year.
The earnings trigger helps decide who must be enrolled. The qualifying earnings band is used to work out the minimum contributions.
Who goes into which group?
The Regulator describes three groups of workers. Which one someone falls into depends on their age and earnings, using monthly figures that match the annual thresholds.
- Must be enrolled: staff aged 22 to State Pension Age who earn over £833 a month (over £192 a week).
- Have a right to opt in: staff aged 16 to 74 who earn over £520 a month and are not in the first group. If they ask to join, the employer must put them into a pension scheme that can be used for automatic enrolment.
- Have a right to join a pension scheme: staff aged 16 to 74 who earn £520 a month or less. If they ask, the employer must provide a scheme, but does not have to pay contributions into it.
What are the minimum contributions?
The Regulator says the minimum total contribution is 8% of the member of staff’s earnings within the qualifying band, and the employer must pay at least 3% of that. You can choose to pay more. Earnings that count include salary, wages, commission, bonuses, overtime and certain statutory pay.
Contributions taken from pay must reach the pension scheme by a legal deadline: the 22nd day of the next month (the 19th if you pay by cheque). You should also agree payment dates with your scheme provider.
A worked example
This is an illustration only, using the qualifying earnings band above. Suppose an employee earns £30,000 a year.
- Earnings in the band: £30,000 minus £6,240 = £23,760.
- Minimum total contribution at 8%: £1,900.80 a year.
- Minimum employer share at 3%: £712.80 a year.
Pension schemes can calculate contributions in different ways, so always check with your provider how your scheme works out the figures.
A short checklist
- Check each worker’s age and earnings against the three groups above whenever pay changes.
- Make sure payroll is using the 2026/27 band of £6,240 to £50,270.
- Confirm the employer contribution is at least 3% and the total is at least 8%.
- Diarise the 22nd (or 19th for cheques) as the date contributions must reach the scheme.
- Keep a record of anyone who asks to opt in or join, and what you did about it.
Common slips to avoid
The most frequent problems are simple ones. Payroll set-ups are sometimes left on figures from a previous tax year, so it is worth confirming the band each April even when the numbers have not changed, as they have not this year. People whose pay varies from month to month may move between the groups described above as their earnings rise or fall, so a one-off check at the start of a job is not enough. And a worker who asks to join or opt in has rights under the rules, so it helps to keep a simple note of the request and your reply.
It also helps to talk to your pension provider early. They can explain how contributions are calculated for your particular scheme, and what information they need from you each pay period.
This article is general information, not financial or legal advice. The thresholds are reviewed every year, so check The Pensions Regulator’s website for the latest figures.