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How UK Pension Auto-Enrolment Works

Set up Pension Providers for staff and employers to make contributions each pay run.

Updated today

What's covered in this guide?:

Pension Setup

Before using pension features, you’ll need to set up a pension provider.

Go to:
​Payroll > Payroll Settings > Pension Providers

You can configure:

  • Pension provider name

  • Employer number (if applicable)

  • Employee contribution (%)

  • Employer contribution (%)

  • Enable automatic pension assessment

💡 Note: If Enable automatic pension assessment is turned on, Workforce will automatically assess employees during pay runs based on their age, earnings, and current pension status. To learn more, see 'Joining a workplace pension'.

Manage employee pension details

Each employee has a pension record that you can manage from:

Workforce > Staff > [Employee] > Pension tab

Here you can view and update:

  • Pension provider

  • Member number

  • Contribution rates

  • Enrolment status

How automatic assessment works

When automatic assessment is enabled:

  • Employees are assessed during pay runs

  • Assessment is based on:

    • Age

    • Earnings

    • Current pension status

This determines whether the employee needs to be enrolled or notified of their rights.

Worker classifications

Employees are classified into one of the following categories:

  • Eligible (not enrolled): must be enrolled into a pension

  • Non-Eligible: can opt in and receive employer contributions

  • Entitled: can opt in, but employer contributions are not required

  • Excluded: not eligible for pension enrolment

  • Pending: not yet assessed or missing required information

Pension status

An employee’s pension status reflects their current situation.

This may show as:

  • Enrolled

  • Opted Out

  • Postponed

  • Or their classification (if not yet enrolled)

What happens during pay runs

During a pay run, Workforce may highlight actions you need to take.

You may see warnings such as:

  • Enrol by [date]
    → The employee is eligible and must be enrolled

  • Auto enrolled this pay run
    → The employee has been enrolled

  • Non-eligible, can opt in
    → The employee should be notified of their right to opt in

  • Entitled worker, offer access
    → The employee should be offered access to a pension

Contributions

Pension contributions are calculated automatically based on your setup.

  • Contributions can be based on qualifying earnings or total earnings

  • Employee and employer contribution percentages are applied accordingly

  • Contribution rates can be adjusted per employee if needed

Important notes

  • Employees must be enrolled before they can opt out

  • A member number is required to complete enrolment

  • Employees are reassessed over time where required

  • Some pension features may vary depending on your organisation’s setup

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