Are Directors Exempt from Auto-Enrolment?
Understanding whether directors need to be assessed for workplace pensions
Not all directors need to be automatically enrolled into a workplace pension scheme. Whether auto-enrolment applies depends on whether the director has a contract of employment and if they meet the standard eligibility criteria.
✅ When Are Directors Exempt?
A director is exempt from auto-enrolment if:
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They do not have a contract of employment
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They are the only person on payroll, or the company has only directors (with no other employees)
In this case:
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The director is not classified as a "worker" under The Pensions Regulator’s definition
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The company is not considered an employer for auto-enrolment purposes
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There is no legal obligation to complete a declaration of compliance
⚠️ When Auto-Enrolment Does Apply to Directors
Auto-enrolment duties may apply if a director:
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Has a contract of employment
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And meets the standard eligibility criteria:
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Aged between 22 and State Pension Age
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Earns more than £10,000 per year
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Is working in the UK
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In this scenario, the director must be assessed like any other employee — and if eligible, must be automatically enrolled into the company’s pension scheme.
🧾 Need to Check Your Setup?
Director arrangements can vary, especially in small companies with mixed roles.
If you're unsure whether your director(s) should be auto-enrolled:
💬 Contact us here with details of your setup, and we’ll help assess your responsibilities.