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Workplace pension rules: what every employer needs to know

A clear guide to your auto-enrolment duties 

Setting up a pension scheme isn’t just a legal box to tick – it’s a big step towards supporting your team’s financial wellbeing. 

Here’s what you need to know to stay compliant, make contributions with confidence, and get the most from Thrive. 

What is automatic enrolment? 

Automatic enrolment – or auto-enrolment – is a UK law. It means every employer must enrol eligible employees into a workplace pension scheme and contribute to it. 

Who do I need to enrol? 

You’ll need to enrol employees who: 

  • Are aged 22 or over. 
  • Are under State Pension age. 
  • Earn more than £10,000 a year. 

If they meet all three, they’re in. 

Your responsibilities as an employer 

Auto-enrolment isn’t a one-off task. It comes with ongoing duties, including: 

  • Assessing employees when they join or become eligible 
  • Enrolling anyone who qualifies 
  • Making regular contributions, every pay period 
  • Managing opt-outs and re-enrolments 
  • Keeping accurate records for at least six years 

Contribution rates 

The legal minimum is 8% of qualifying earnings: 

  • Employer: 3% 
  • Employee: 5% 

Some schemes offer more – but this is the base level for compliance. 

Making contributions 

Contributions are due every time you run payroll. So, if you pay monthly, you contribute monthly. 

With Thrive, it’s simple. Upload your PAPDIS file and we’ll take care of the rest. 

Can employees opt out? 

Yes. After enrolment, employees have one month to opt out and get a refund of any contributions. After that: 

  • They stay in the scheme 
  • Contributions continue. If an employee has missed their opt out window, they would need to contact us to end their Thrive membership and stop further contributions. Once they have missed their opt out window, they won’t be able to receive a refund. 
  • You’ll need to re-enrol them every three years if they’re still eligible. 

What about new joiners? 

For every new starter: 

  • Check if they’re eligible. 
  • Enrol them if they are. 
  • Let them know if they’re not – they can still ask to join. 

Thrive makes it easy with templates and workflows that keep everything on track. 

Re-enrolment 

Every three years, you must re-enrol any previously opted-out employees who now qualify. 

It’s a legal requirement – even if they opted out last time. 

Don’t worry, Thrive will remind you when it’s due and guide you through the steps. 

What happens if I don’t comply? 

Missing your duties can lead to: 

  • Fines from The Pensions Regulator 
  • More serious penalties if issues aren’t resolved 

Thrive gives you built-in compliance checks and timely reminders, so you’re always a step ahead. 

Keeping records 

You’ll need to keep: 

  • Enrolment details 
  • Contribution history 
  • Opt-out confirmations 

This need to be kept for at least six years. 

Got questions? 

We’re here to help. If you’re ever unsure about your duties, get in touch with our Customer Support team. 

  • Call: 01452 922000 
  • Email: help@mythrive.co.uk 
  • Live chat: Available on the Thrive website 

Thrive is here to simplify every step – from enrolment to compliance and everything in between – so you can focus on your team, not the admin.