UK Pension Auto-Enrolment: Key Thresholds and Duties for the 2025/2026 Tax Year
Pension Auto-Enrolment (AE) is a legal requirement for every UK employer, regardless of company size. It requires you to automatically enrol eligible staff into a workplace pension scheme and make minimum contributions.
Staying compliant means correctly applying the annual thresholds and contribution rules. As your dedicated payroll bureau in Wandsworth, London, Zaypay has prepared this guide to the key AE figures and employer duties for the 2025/2026 tax year (starting April 6, 2025).
1. Auto-Enrolment Thresholds for 2025/2026
For the 2025/2026 tax year, the government has decided to maintain all three key thresholds at the same level as the previous year. This continuity is a simplification for payroll processing but requires employers to ensure their systems are using these specific figures.
| Threshold | Annual Amount (2025/2026) | Purpose |
| AE Earnings Trigger | £10,000 | Determines which staff must be automatically enrolled. |
| Lower Level of Qualifying Earnings | £6,240 | The amount of earnings contributions are calculated from. |
| Upper Level of Qualifying Earnings | £50,270 | The maximum amount of earnings contributions are calculated up to. |
Note: For weekly, monthly, or other pay periods, these annual figures are converted accordingly (e.g., the monthly trigger remains at £833).
2. Determining Employee Eligibility: Who to Enrol
Your employees are grouped into three categories based on their age and earnings. You must assess all staff every pay period.
| Employee Status | Age Criteria | Earnings Criteria (Annual) | Employer Duty |
| 1. Eligible Jobholder | Age 22 to State Pension Age | Earns over £10,000 | Must be automatically enrolled and both you and the employee must contribute. |
| 2. Non-eligible Jobholder | Age 16 to 74 | Earns £6,240 to £10,000 | Employee can opt in. If they do, you must contribute. |
| 3. Entitled Worker | Age 16 to 74 | Earns £6,240 or less | Employee can request to join. You do not have to contribute (though you can choose to). |
3. Minimum Contribution Rates (The 8% Rule)
The minimum total contribution has been set at 8% of a staff member’s qualifying earnings since April 2019, and this rate remains fixed for 2025/2026.
This 8% must be split as follows:
| Contributor | Minimum Percentage of Qualifying Earnings |
| Employee Contribution | 5% (includes tax relief) |
| Employer Contribution | 3% |
| Total Minimum Contribution | 8% |
Understanding ‘Qualifying Earnings’
Contributions are only calculated on earnings that fall between the Lower and Upper Levels of Qualifying Earnings ($\textsterling6,240$ and $\textsterling50,270$).
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Example: A staff member earning $\textsterling25,000$ per year has qualifying earnings of $\textsterling18,760$ ($\textsterling25,000 – \textsterling6,240$). Their minimum total pension contribution will be 8% of $\textsterling18,760$.
4. Employer Compliance Duties: Beyond Contributions
Auto-enrolment compliance involves more than just calculating contributions. Your ongoing legal duties include:
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Re-enrolment: Every three years, you must formally re-enrol any eligible staff who previously opted out of the scheme (unless they opted out within the last 12 months). Many businesses will face their re-enrolment date in 2025 or 2026.
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Opt-Out/Opt-In Management: Processing employee requests to opt out (and refunding contributions if within the 1-month opt-out window) and handling requests to join or opt in.
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Communication: Providing all employees with the statutory communications about their rights and their enrolment status within the strict deadlines.
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Accurate Records: Maintaining detailed records for The Pensions Regulator for six years.
Don’t Let Auto-Enrolment Compliance Become a Burden
Incorrect application of the Earnings Trigger or Qualifying Earnings bands is one of the most common reasons employers receive penalties from The Pensions Regulator. The process of assessing, enrolling, calculating contributions, and managing re-enrolment dates is complex, especially for growing businesses.
As a specialist payroll bureau, Zaypay ensures your business in Wandsworth—and across London—meets every auto-enrolment obligation flawlessly. We integrate these duties seamlessly into your monthly payroll, giving you complete confidence and freeing you up to focus on getting more clients.
Contact Zaypay today to simplify your payroll and secure your compliance for 2025/2026.
