Is It Illegal for an Employer Not to Pay Pension

Learn your legal rights if your employer is not paying into your pension. Find out who qualifies for automatic enrolment and how to take action.

Is It Illegal for an Employer Not to Pay a Pension?

In the United Kingdom, most employers are legally required to provide a workplace pension scheme and make contributions into it for eligible employees. This is part of the government’s automatic enrolment rules, designed to help workers save for retirement.

So is it illegal for an employer not to pay into your pension? In many cases, the answer is yes. Employers must follow strict legal obligations, and failure to comply can result in serious consequences.

This article explains what the law requires, who qualifies for employer pension contributions, and what you can do if your employer is not paying into your pension as they should.

What does the law say?

Under the Pensions Act 2008, all employers in the UK must put certain employees into a pension scheme and pay into it. This is known as automatic enrolment.

An employer who fails to meet their duties may be:

  • Breaking the law

  • Facing fines or enforcement action from The Pensions Regulator

  • Required to repay any missed contributions

Who must be enrolled in a pension?

Your employer must automatically enrol you in a pension scheme if you meet all of the following conditions:

  • You are aged between 22 and State Pension age

  • You earn at least £10,000 per year

  • You work in the UK under a contract of employment

If you meet these criteria, your employer must:

  • Enrol you into a qualifying pension scheme

  • Pay at least 3 percent of your qualifying earnings into the scheme

  • Deduct your contributions and pay them into the scheme along with theirs

If you do not meet the automatic enrolment criteria, you can still ask to join the pension scheme, and in most cases, the employer will still have to contribute.

What are the employer’s responsibilities?

Employers are legally required to:

  • Enrol eligible staff in a qualifying workplace pension

  • Make the correct pension contributions on time

  • Inform employees about the scheme and their rights

  • Keep accurate records of pension contributions

  • Comply with re-enrolment duties every three years

If an employer fails to enrol staff or does not pay contributions, they may be reported to The Pensions Regulator.

Is it illegal not to pay into the pension?

Yes, if an employer fails to make the required contributions to a pension scheme for eligible employees, it is a breach of the law.

This includes:

  • Not enrolling eligible staff

  • Not making minimum contributions

  • Failing to pass employee contributions to the pension provider

  • Encouraging staff to opt out of the pension scheme

Such actions can lead to enforcement notices, penalty fines, and legal proceedings. Employers may also have to make up for missed contributions, including back payments with interest.

What should you do if your employer is not paying?

If you believe your employer is not paying into your pension when they should be, take the following steps:

1. Speak to your employer or HR department

There may be a genuine mistake or administrative delay. Ask for an explanation and request evidence of pension payments.

2. Check your pension account

Log in to your pension provider’s website or contact them to confirm whether contributions are being made.

3. Gather evidence

Keep copies of payslips, contracts, and pension scheme documents that show deductions or agreements regarding pension contributions.

4. Report to The Pensions Regulator

If your employer continues not to pay or fails to respond, you can report them to The Pensions Regulator online at www.thepensionsregulator.gov.uk

They can investigate and take enforcement action if needed.

Are there any exceptions?

Some workers are not automatically enrolled, such as:

  • Self-employed individuals

  • Freelancers or contractors without employment contracts

  • Workers earning less than £10,000 per year

  • Workers under 22 or over State Pension age

If you do not qualify for automatic enrolment, you can still ask to join your employer’s pension scheme. If you earn over £6,240 a year (2024 to 2025 threshold), your employer must still make contributions if you opt in.

Final thoughts

Yes, it is illegal for an employer to fail to pay pension contributions for eligible employees. If you meet the criteria for automatic enrolment, your employer must enrol you into a pension scheme and contribute to it. Failure to do so is a serious legal issue.

If you suspect your employer is not complying with their pension duties, do not ignore it. Start by raising the matter with your employer, then escalate it to The Pensions Regulator if necessary. Protecting your pension rights today can make a big difference to your future retirement income.