If you're hiring apprentices, you've probably asked yourself if apprentices are entitled to workplace pensions like other employees? We’re here to tell you… yes, apprentices can and often must be enrolled in a workplace pension scheme. But it depends on factors like age and earnings, and it’s your job as an employer to know the rules and act on them.
To put this into perspective: since the introduction of automatic enrolment in 2012, workplace pension participation in the private sector has risen from about 42% of eligible employees to 86% by 2022, largely thanks to the enrolment obligations placed on employers.
In this blog, we’ll break down everything you need to know about apprentice pension entitlement, from auto-enrolment thresholds to contribution rates, using real-world examples and employer-focused advice.
Are apprentices entitled to a pension?
Apprentices aren’t treated differently when it comes to workplace pensions. They fall under the same rules as any other employee when it comes to auto-enrolment.
Auto-enrolment is a legal duty for UK employers to provide a pension scheme and make contributions for eligible staff. Since 2012, this rule has included apprentices who meet certain criteria.
To be automatically enrolled, an apprentice must:
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Be aged 22 or over but under the State Pension age
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Earn at least £10,000 a year
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Work in the UK
If all three conditions are met, you must enrol them into a workplace pension scheme and begin contributions. But what if your apprentice doesn’t meet those criteria? They still have options, and you still have obligations.
What happens if apprentices don’t meet the threshold?
Not all apprentices hit the auto-enrolment criteria, especially if they’re younger or just starting out. But even if your apprentice is under 22 or earning below the £10,000 threshold, they may still want to join your pension scheme. And if they ask to opt in, you can’t say no.
Here’s what you need to know:
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Aged 16 to 21, or earning between £6,240 and £10,000: They can opt in, and you must contribute if they do
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Earning below £6,240: They can ask to join, but you aren’t required to contribute (though you may choose to)
This is a common area of confusion. Many employers wrongly assume that apprentices are “too young” or “don’t qualify,” but that’s not always the case. If they meet the earnings threshold and are of eligible age, they qualify. If they don’t, they can still choose to join.
Do apprentices pay into a pension?
Yes, when enrolled in a workplace pension, apprentices do contribute from their pay, just like other employees. This usually comes out of their wages automatically each pay cycle.
The minimum contribution rates are:
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Employer: 3%
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Apprentice: 5%
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Total: 8% of “qualifying earnings”
What are qualifying earnings?
These aren’t the apprentice’s full salary. Instead, qualifying earnings are calculated between a lower and upper earnings band, currently £6,240 to £50,270 for the 2025/26 tax year.
Let’s break that down.
Example:
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Your apprentice earns £14,000 a year
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Their qualifying earnings = £14,000 - £6,240 = £7,760
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You pay 3% of £7,760 = £232.80 annually
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They pay 5% = £388 annually (pre-tax, and tax relief usually applies)
This means that even modest apprentice salaries can trigger meaningful pension contributions, especially over time.
Learn more: Do Apprentices Have to Pay Tax? Everything You Need to Know
Common scenarios: When should employers act?
Apprentice turns 22
Your apprentice has been earning £12,000 a year and is about to turn 22. That means you need to assess them immediately. Since they now meet both the age and earnings criteria, they must be auto-enrolled.
Learn more: Am I Too Old for an Apprenticeship?
Pay increase
An 18-year-old apprentice gets a raise from £9,500 to £10,500 annually. Now they meet the earnings threshold, but they’re still under 22. Auto-enrolment won’t apply yet, but you should tell them they can opt in, and you must contribute if they do.
New starter on £8,000
A new apprentice starts at £8,000 per year and is 19 years old. They’re not eligible for auto-enrolment, but if they request to join your scheme, you’re legally obligated to enrol them and start contributing.
What employers need to do for apprentice workplace pension
Employing apprentices comes with several legal responsibilities, and workplace pensions are a key part of that. Here’s what you should have in place:
1. Assess every apprentice
When an apprentice starts and at every pay period, make sure to check their age and earnings. This tells you whether auto-enrolment applies.
2. Communicate clearly
Let apprentices know:
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Whether they’re being enrolled
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How much will be deducted
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Their right to opt out (within one month)
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Their ability to opt in if they’re not automatically enrolled
3. Make timely contributions
You must pay your share of the contributions, which is at least 3% of qualifying earnings. Late or missing contributions can lead to penalties from The Pensions Regulator.
4. Reassess regularly
Circumstances change, such as birthdays, pay rises, etc. Review your apprentice’s status regularly to stay compliant.
5. Keep accurate records
You need to track enrolments, opt-ins, opt-outs, and all contributions. Your pension provider or payroll software can usually help automate this.
Apprentice Levy on pension payments
It's important to separate the apprentice levy from pension responsibilities. The apprentice levy is a charge paid by large employers (payroll over £3 million) to fund apprenticeship training. It goes into your Digital Apprenticeship Service account and can be used to pay for apprenticeship training and assessment.
However, the apprentice levy has nothing to do with workplace pension contributions. You still need to assess and contribute to pensions separately, regardless of whether you pay the levy.
Choose Total People for apprenticeship support
Apprenticeships are a powerful way to build skilled teams, but with great opportunity comes real responsibility. When it comes to pensions, employers must act right by apprentices and stay on the right side of the law.
If you need support with managing apprentices or staying on top of pension obligations, Total People is here to help. We guide employers every step of the way, from recruitment to training to compliance. Contact our team today.
