Do agency workers get a pension?
Yes. Agency workers aged 22 to State Pension age who earn at least £10,000 a year (£192 a week) must be automatically enrolled in a workplace pension. The employer is whichever of the agency or client is responsible for paying them, which is usually the agency. The employer pays at least 3% of qualifying earnings.
Last checked 26 October 2026. General information, not legal or tax advice.
Who is the employer for auto-enrolment
The Pensions Regulator's guidance says an agency worker without a worker's contract is treated as a worker for the pension duties, and the employer is the agent or the principal "depending on which is responsible for paying the worker". If that cannot be decided, it is whoever actually pays them (TPR detailed guidance 1, paras 20 to 21). TPR's guide for advisers puts it simply: where an agency pays the worker and their National Insurance, the agency is the employer, not the client (TPR). If the agency uses an umbrella company that employs the worker, the umbrella has the duties.
Who must be enrolled
| Threshold | Year | Month | Week |
|---|---|---|---|
| Earnings trigger (must enrol if aged 22 to State Pension age) | £10,000 | £833 | £192 |
| Lower level of qualifying earnings | £6,240 | £520 | £120 |
| Upper level of qualifying earnings | £50,270 | £4,189 | £967 |
Source: The Pensions Regulator, earnings thresholds. Workers outside the age or earnings criteria do not have to be enrolled, but can ask to join (GOV.UK).
How much the agency pays
The employer must pay at least 3% of qualifying earnings (GOV.UK), with a minimum total of 8% including the worker's own contribution and tax relief (GOV.UK). Qualifying earnings are the part of pay between the lower and upper limits, worked out per pay period. Example with made-up figures: a weekly-paid temp earning £582.76 in a week, including holiday pay, has qualifying earnings of £462.76 (582.76 minus 120), so the 3% employer contribution is £13.88.
Assessing temps whose hours vary
Earnings are checked against the trigger for each pay period, so a temp may be eligible one week and not the next. GOV.UK says that if staff become eligible because their age or earnings change, you must enrol them and write to them within 6 weeks (GOV.UK). An employer may use postponement to delay the duty for up to three months (TPR para 54), which some agencies use for short assignments. Workers can opt out after being enrolled.
Pensions and the 12-week rule
Pensions are not part of equal treatment under the Agency Workers Regulations: regulation 6 excludes pensions and retirement benefits from "pay" (reg 6). So after 12 weeks a temp does not become entitled to the client's company pension scheme. Their pension rights come from auto-enrolment through the agency. Acas also notes that agencies must enrol eligible agency workers and that workers who opt out tell both the agency and the pension provider (Acas).
Questions people ask
Is it the agency or the client that enrols agency workers?
Usually the agency. The Pensions Regulator says the employer for automatic enrolment is whichever of the agency or the client is responsible for paying the worker. In most temp arrangements the agency pays the worker and their National Insurance, so the agency must assess, enrol and contribute.
What if the agency uses an umbrella company?
If the umbrella company employs the worker and pays them, the umbrella company is the employer and has the automatic enrolment duties. The agency should check that the umbrella is doing this, because the worker's pension is part of what the client is paying for in the charge rate.
Do agency workers get the client's pension after 12 weeks?
No. The Agency Workers Regulations exclude pensions from the pay and conditions that must match a direct recruit after 12 weeks. Agency workers get pension rights through automatic enrolment with their employer, usually the agency, from when they meet the age and earnings criteria.
Can a temp opt out of the agency pension?
Yes. Once enrolled, a worker can choose to opt out. Acas says an agency worker who wants to opt out must tell both the agency and the pension provider. Workers who are not eligible because of their age or earnings can still ask to join, and the agency must then put them in a scheme.
Sources
- The Pensions Regulator: detailed guidance 1, employer duties and defining the workforce (agency workers, paras 20 and 21)
- The Pensions Regulator: what is automatic enrolment (the agency is the employer)
- The Pensions Regulator: earnings thresholds 2026 to 2027 (£10,000 trigger, £6,240 to £50,270)
- GOV.UK: Workplace pensions for employers (who you must enrol)
- GOV.UK: Workplace pensions, how to enrol staff (at least 3% employer contribution)
- GOV.UK: Workplace pensions, what you, your employer and the government pay (3%, 5%, 8%)
- Agency Workers Regulations 2010, regulation 6 (relevant terms and what pay excludes)
- Acas: Agency workers, your rights after 12 weeks
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