Auto Enrolment – Employee opt-out or suspension window opens 1 July 2026

Overview

As the scheme reaches its first key milestone, employers should now prepare for the initial employee opt-out windows, which commenced on 1 July 2026, based on the statutory six-month minimum participation period.

Opting out

Under automatic enrolment:

• Employees must remain in the scheme for at least 6 months after enrolment
• After this period, a 2-month opt-out window applies (months 6 to 8)
• For employees enrolled on 1 January 2026, this window runs from 1 July to 31 August 2026

Where an employee opts out within this window:

• Their own contributions are refunded
• Employer and State contributions remain invested in the fund for the employee

Once an employee has been in the scheme for more than 8 months:

• The option to opt out is no longer available

Employees who opt out will generally be automatically re-enrolled after two years, provided they remain eligible.

Suspension of contributions

After completing the initial 6-month participation period:

• Employees may suspend their contributions at any time
• During a period of suspension:

o    Employee, employer, and State contributions all stop

• Existing funds remain invested in the employee’s account

Where contributions are suspended, they may be restarted at a later date, subject to scheme rules on recommencement following a suspension.

Compliance considerations

Employers should note that:

• It is an offence under the legislation to hinder or attempt to hinder an employee from participating in the scheme
• Communications should be strictly factual and neutral 

If you have any questions in relation to the above, please contact a member of the employment tax team or your usual Forvis Mazars contact.