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JL JobLabs

UK Recruitment Glossary

Workplace Pension

Alex By Alex · 12-year UK recruiter · Updated April 2026

In recruiter context

Auto-enrolment requires UK employers to enrol eligible workers (over 22, earning over £10,000/year) into a workplace pension. Minimum contributions: 5% from the employee, 3% from the employer = 8% total. Most decent employers contribute more (4-12%) and many match employee contributions up to a cap. The biggest mistake UK employees make: opting out, or not increasing contributions when offered a salary rise. A 50p-on-the-pound match (1% of salary contributed by the employer for every 1% you contribute) is one of the highest-return moves available. Workplace pensions are typically defined-contribution — investment performance matters and you should check the default fund.

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