Does pension auto enrolment apply to low-paid staff?

Under the workplace pensions rules, all employers have to automatically enrol their staff into a workplace pension scheme if they are ‘eligible workers’ which means:

• working or ordinarily working in the UK, and
• aged between 22 and state pension age
• classed as a ‘worker’, and  
• earn at least £10,000 a year (2026/27) 

If you have staff that meet the definition of an eligible worker, they must be put into a workplace pension scheme and you must pay regular pension contributions for them. You don’t need to ask their permission and therefore we refer to them being ‘automatically enrolled’ into the pension scheme.

If you have no staff to automatically enrol, there is no need to set up a pension scheme immediately. However, while your staff may not be eligible for automatic enrolment, they can still ask to opt into or join a pension scheme. If they do this, your responsibilities will depend on how much they earn: 

1. If they earn more than £10,000 (2026/27) and are aged 16-21 or between the state pension age and age 74 they are a non-eligible jobholder.

2. If they earn between £6,240 and £10,000 (2026/27) and are aged 16-74 they are also a non-eligible jobholder.

3. If they earn less than £6,240 (2026/27), they are an entitled worker. Non-eligible jobholders have the right to opt-in to the pension scheme, and if they do, you must make employer contributions for them.

Entitled workers have the right to join the pension scheme. You do not have to make employer contributions for them if they choose to join.  

What happens if I don’t meet all the employer duties? 

Failure to comply with the workplace pensions rules can lead to a fixed penalty of £400 plus escalating penalties starting from £50 per day.  

We can help you ensure your business is compliant. Contact us for more information online or call 0113 457 2910 .  

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Last updated 17 Jul 2026 | First published 3 Apr 2018

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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