Pension Auto-Enrolment 2025: Employer Guide

Pension auto-enrolment requires employers to automatically enrol eligible workers into a qualifying workplace pension scheme and make contributions on their behalf. Eligible workers are those aged between 22 and State Pension age who earn above the earnings trigger — currently £10,000 per year. The minimum employer contribution is 3%, with the employee contributing at least 5%.

The administrative burden is in the assessment and communication. Every pay period, you must assess workers to determine whether they are eligible. Eligible workers must be enrolled, given an enrolment letter, and allowed a window to opt out if they choose. If they opt out and then re-enrol later — which happens automatically every three years — the communication cycle repeats.

Mellow's pension module assesses eligibility automatically each pay period and generates the required enrolment communications. Integration with major pension providers — including NEST, The People's Pension, and Aviva — means contribution data flows from payroll to the pension provider without manual data entry. The Pensions Regulator can audit your auto-enrolment records at any time. Mellow holds the full assessment history, so you have the evidence of compliance when it matters.