Every employer with staff has automatic-enrolment duties. Eligible jobholders must be enrolled into a qualifying pension scheme unless they opt out; different duties apply to other workers. See the Automatic enrolment ― overview guidance note.

Contributions in respect of individual employees may be made by the employer to an occupational scheme or to a personal pension scheme.

Employer contributions to a registered pension scheme are normally exempt from employment income tax and NIC. Many employers offer a salary sacrifice arrangement so that employees give up part of their salary and, in exchange, the employer makes an increased pension contribution. Compared with an equivalent employee contribution that already attracts income tax relief, the principal additional employee saving is normally Class 1 NIC (see the Overview of NIC Classes, rates and thresholds guidance note); the precise result depends on the contribution method and the employee’s earnings. Given that the employer would pay secondary Class 1 NIC on the salary that the employee would use to make the pension contributions on their own behalf, there is also an incentive