• Pay & Benefits
Peninsula Logo

Peninsula Team, Peninsula Team

(Last updated )

Read our Pensions advice guides for employers, or contact us for further HR, Health & Safety and Employment law advice.

By 2018, all UK employers will be required by law to automatically enrol eligible members of staff into a workplace pension scheme.

The auto-enrolment system was initially introduced in October 2012 as a legal requirement for large organisations only, with smaller organisations phased into the scheme year on year.

It will eventually be the obligation of all employers to establish their own pension scheme or use the government scheme set up specifically for this purpose.

Who is eligible?

Employers are required to enrol workers – both part-time and full-time – in a workplace pension scheme providing they meet the following criteria:

  • The employee works in the UK.
  • The employee earns more than £10,000 a year (tax year 2016-17)
  • The employee is not already in a suitable workplace pension scheme
  • The employee is at least 22 years old, but under State Pension age

Opting out

Although all eligible employees must be automatically enrolled whether they want to or not, individuals can then choose to  ‘opt out’ of the scheme at any time. However, the employer must follow the same process again to automatically enrol these workers in a pension scheme three years later.

Categories and employer contribution

Employees are assigned a particular category depending on their age and level of income. This category then determines whether or not the employer has to contribute to the pension, and how much they are due to pay in. Employers must initially contribute a minimum of 1%, but this level will increase to 2% from April 2018 – March 2019 and then 3% thereafter.

The law behind pensions

The Pensions Act 2008 is the main legislation covering workplace pensions.


  • By 2018, all employers must automatically enrol their eligible employees in a workplace pension scheme.
  • Once automatically enrolled, employees then have the option to opt out if they wish, however they must be automatically re-enrolled once three years has passed.
  • Employer contribution is set at an initial 1%, rising to 3% as of April 2019.

Need help from Peninsula?

Peninsula offers expert advice on pensions. Our teams provide 24/7 HR advice which is available 365 days a year. We take care of everything when you work with our HR experts.

Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and health & safety questions


Got a question? Check whether we’ve already answered it for you…

Related articles

  • A cafe worker handing food and drink to customer smiling


    National Living Wage

    In this guide, we'll discuss what the National Living Wage is, what employees are entitled to, and the consequences of incorrectly paying wages.

    Peninsula TeamPeninsula Team
    • Pay & Benefits
  • a woman and a man high fiving by a window



    Read our guide on EAP’s. Discover what they are, what they include, and the benefits it can bring to your company.

    Peninsula GroupHR and Health & Safety Experts
    • Pay & Benefits
  • A woman typing into a calculator at a desk


    Salary Sacrifice

    In this guide, we'll discuss what a salary sacrifice is, the different salary sacrifice schemes, and its advantages and disadvantages.

    Peninsula TeamPeninsula Team
    • Pay & Benefits
Back to resource hub

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and Health & Safety questions

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.