Pension Auto-Enrolment Thresholds Frozen Again for 2026/27 Tax Year
UK employers' mandatory pension auto-enrolment thresholds remain unchanged for the 2026/27 tax year, with the earnings trigger frozen at £10,000 and qualifying earnings band at £6,240–£50,270.
For 2026/27, the annual thresholds remain unchanged. The automatic enrolment earnings trigger is £10,000, the lower earnings limit is £6,240, and the upper earnings limit is £50,270. This represents a continuation of the freeze on workplace pension thresholds that has been in place since 2021.
The lower and upper earnings limits are still at £6,240 and £50,270 in 2026, and are likely to remain frozen for the 2026/27 tax year. While the headline figures stay the same, for the 2025/26 tax year, the government has frozen the earnings thresholds, and looks likely to continue the freeze into 2026/27. As wages rise, this effectively widens the net of auto-enrolment in real terms.
What This Means for Employees
For tax year 2026/27, your qualifying earnings for auto-enrolment pension contribution purposes are your earnings over £6,240 up to the limit of £50,270. Employers contribute at least 3% of qualifying earnings to the pension. Employees contribute at least 5% of qualifying earnings to the pension.
The frozen thresholds mean that as inflation drives salaries upward, an increasing proportion of the workforce becomes subject to mandatory pension contributions. This is particularly relevant for foreign workers on modest starting salaries: if you earn £10,000 or more and are between 22 and state pension age, your employer must enrol you in a workplace pension scheme unless you actively opt out.
If you are a foreigner newly employed in the UK, ensure you understand your workplace pension obligations. Your employer must automatically enrol you once you hit the £10,000 annual earnings trigger (or if already earning above this, immediately). You have the right to opt out, but doing so forfeits the employer's contribution and future tax relief. Review your enrolment letter carefully and consider the long-term retirement savings benefit before opting out.
Sources
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