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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:

  • They do not have a contract of employment

  • They are the only person on payroll, or the company has only directors (with no other employees)

In this case:

  • The director is not classified as a "worker" under The Pensions Regulator’s definition

  • The company is not considered an employer for auto-enrolment purposes

  • 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:

  • Has a contract of employment

  • And meets the standard eligibility criteria:

    • Aged between 22 and State Pension Age

    • Earns more than £10,000 per year

    • Is working in the UK

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.