DWP Reveals Whether Automatic Enrolment Pension Limits Will Change In 2027

Millions of UK workers will be affected by a new government announcement concerning workplace pensions. The decision will shape how employees and employers prepare for retirement savings in the coming tax year.

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DWP Reveals Whether Automatic Enrolment Pension Limits Will Change In 2027
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The Department for Work and Pensions (DWP) has confirmed that workplace pension earnings thresholds will remain unchanged for 2027/28, meaning workers and employers will continue to follow the same automatic enrolment rules as this year.

Automatic Enrolment Threshold Remains At £10,000

The annual earnings trigger determines whether an employee must be automatically enrolled into a qualifying workplace pension by their employer. For the 2027/28 tax year, the threshold will remain at £10,000.

The DWP estimates that keeping the trigger at this level will increase private pension participation by around 48,000 people, bringing the total to approximately 17.4 million. Automatic enrolment applies to eligible workers who ordinarily work in Great Britain and meet the relevant age and earnings requirements.

Lower Earnings Limit Stays At £6,240

The lower earnings limit (LEL) will also remain unchanged at £6,240 a year. This threshold helps determine the qualifying earnings on which workplace pension contributions are calculated.

It also affects workers classified as non-eligible jobholders. People in this category can choose to join their employer’s pension scheme and receive a mandatory employer contribution if they earn between the lower earnings limit and the £10,000 automatic enrolment trigger.

The DWP said keeping the limit unchanged supports the principle that automatically enrolled workers should continue making contributions on a meaningful proportion of their income. The department also linked the decision to its ambition to strengthen retirement savings, particularly among people on low and moderate incomes.

Upper Earnings Limit Remains At £50,270

The upper earnings limit (UEL) will remain at £50,270 for 2027/28. This figure establishes the upper end of the qualifying earnings band used to calculate minimum workplace pension contributions.

The DWP said higher earners may be more likely to have access to pension schemes providing contributions above the minimum requirements, as well as additional personal retirement savings.

Workplace Pension Thresholds For 2027/28

The three automatic enrolment thresholds will remain at the following levels:

Pension threshold2026/272027/28
Earnings trigger£10,000£10,000
Lower earnings limit£6,240£6,240
Upper earnings limit£50,270£50,270

All three figures will therefore remain unchanged for the next tax year.

Employers Must Continue Following Automatic Enrolment Rules

Automatic enrolment requires employers to enrol eligible workers into a qualifying workplace pension scheme. Employees who meet the age and earnings criteria are enrolled automatically, although they can choose to opt out after joining.

Workers who do not qualify for automatic enrolment may still have the right to opt in, depending on their age and earnings. In certain circumstances, their employer must also contribute to the pension.

The DWP reviews the three earnings thresholds annually, as required by law. For 2027/28, the decision to freeze all three limits means employers, employees and pension providers will continue working with the existing figures, while the department expects private pension participation to reach around 17.4 million people.

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