Payroll and Automatic Enrollment Processes in England: What You Need to Know for the 2025 Period

What is Payroll Management and Automatic Enrollment?

Payroll management includes the correct and timely payment of employees' salaries, proper calculation and reporting of tax and social security deductions. Automatic enrollment is a system that requires employers to automatically include their employees who meet certain criteria in pension plans.

Who is Subject to Automatic Enrollment?

As of the 2025/26 period, employees who meet the following criteria are subject to automatic enrollment:

• Be over 22 years of age and under the state pension age

• Be working in the UK

• Have an annual income of £10,000 or more

Employees who meet these criteria must be automatically included in pension plans by their employers.

The Automatic Enrollment Process

The steps employers must follow in the automatic enrollment process are as follows:

1. Assessment of Employees: It is determined whether employees are eligible for automatic enrollment based on age and income criteria.

2. Pension Plan Selection: The employer selects a suitable pension plan and includes the employees in this plan.

3. Information: Written information is provided to employees about automatic enrollment.

4. Implementation of Enrollment: Employees are included in the pension plan within the specified period, and contribution payments are initiated.

5. Declaration and Record: The employer notifies The Pensions Regulator that the automatic enrollment process has been completed and maintains the necessary records.

Employers must complete this process within no later than 6 weeks from the date employees start working.

Contributions and Limits

The income limits and contribution rates set for automatic enrollment for the 2025/26 period are as follows:

• Lower Income Threshold: £6,240

• Upper Income Threshold: £50,270

• Total Minimum Contribution: %8 (Employer: %3, Employee: %5)

These contribution rates are calculated based on the earnings of employees within the specified income range.

Employee Rights

Employees have the following rights after being included in a pension plan under automatic enrollment:

• Right to Withdraw: Employees can opt out of the pension plan within 1 month from the date of automatic enrollment.

• Right to Rejoin: Employees who opt out can rejoin the pension plan at any time they wish.

• Re-enrollment: Employers are required to automatically re-enroll employees who have opted out of the pension plan every 3 years.

Manage Your Payroll and Automatic Enrollment Processes Securely with ORTAC

Payroll management and automatic enrollment processes in the UK are critical for legal compliance and employee satisfaction. As ORTAC, we manage these processes professionally on your behalf, ensuring that you fulfill your legal obligations completely.

👉 To securely manage your payroll and automatic enrollment processes in the UK, contact us