Free Pension Contribution Calculator UK | Auto-Enrolment

Calculate employer and employee pension contributions for UK auto-enrolment. Under UK law, the minimum total contribution is 8% of qualifying earnings: at least 3% from the employer and 5% from the employee (including tax relief).

Enter annual salary and contribution rates to see monthly and annual breakdowns. Supports qualifying earnings and total salary calculation bases. Updated for 2026.

Frequently Asked Questions

What are the minimum workplace pension contributions in the UK?

Under UK auto-enrolment rules, the minimum total pension contribution is 8% of qualifying earnings. The employer must contribute at least 3%, and the employee contributes the remaining 5% (which includes tax relief).

What is auto-enrolment and who must comply?

Auto-enrolment is a UK legal requirement for employers to automatically enrol eligible workers into a workplace pension scheme. All employers, regardless of size, must comply.

What are qualifying earnings for pension contributions?

Qualifying earnings are the band of earnings on which minimum pension contributions are calculated. The band has a lower and upper limit set each tax year by the government.

How does salary sacrifice work for pensions?

Salary sacrifice for pensions is an arrangement where an employee gives up part of their salary in exchange for the employer paying it directly into their pension. Both employer and employee save on NI contributions.

Can employers contribute more than the minimum?

Yes, many employers contribute more than the 3% minimum. There is no upper limit on employer contributions, though total annual tax-relieved contributions are subject to the Annual Allowance.

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Free Pension Calculator🇬🇧 UK
Pension Contribution Calculator

Calculate UK workplace pension contributions. See employee and employer splits, qualifying earnings, and projected pension pot.

UK auto-enrolment requires employers to contribute at least 3% and employees at least 5% of qualifying earnings (£6,240–£50,270 in 2025/26) into a workplace pension. GOV.UK workplace pensions →

8% Min
Total Contribution
3% + 5%
Employer + Employee
Calculate Pension
Enter salary and contribution rates to calculate pension contributions

Minimum 5% for auto-enrolment (includes 1% tax relief)

Minimum 3% for auto-enrolment

Qualifying Earnings: Contributions are calculated on earnings between £6,240 and £50,270 (2025/26).
Pension Contributions
Based on UK auto-enrolment qualifying earnings

Enter salary and rates to calculate pension contributions

UK Pensions

How do UK workplace pensions work?

What are the auto-enrolment requirements?

All UK employers must automatically enrol eligible workers into a workplace pension scheme. Eligible workers are those aged between 22 and state pension age, earning at least £10,000 per year, and working in the UK. Employers must make minimum contributions and cannot encourage employees to opt out. Workers who do opt out can be re-enrolled every three years.

What are the minimum contribution rates?

The minimum total contribution is 8% of qualifying earnings, split between employer (minimum 3%) and employee (minimum 5%, which includes 1% from basic rate tax relief). Many employers choose to contribute more than the minimum. Contributions are calculated on qualifying earnings — the portion of salary between £6,240 and £50,270 for the 2025/26 tax year.

What are qualifying earnings?

Qualifying earnings are used to calculate minimum pension contributions. They include salary, overtime, bonus, commission, and statutory pay (such as SSP and SMP). Only the portion between the lower limit (£6,240) and upper limit (£50,270) counts. This means the first £6,240 of earnings is not subject to pension contributions, and earnings above £50,270 are also excluded from the minimum calculation.

How does tax relief on pensions work?

Employee pension contributions receive tax relief, effectively reducing the cost. For basic rate taxpayers (20%), a £100 contribution only costs £80 after tax relief. Higher rate taxpayers (40%) can claim additional relief through their tax return. The method of tax relief depends on the pension scheme type: relief at source or net pay arrangement.

What is a salary sacrifice pension?

Some employers offer salary sacrifice arrangements for pension contributions. The employee agrees to reduce their contractual salary, and the employer pays the saved amount into the pension. Both employer and employee save on National Insurance (15% and 8-2% respectively). The employee also saves on income tax. This can be significantly more tax-efficient than traditional contributions, though it reduces the salary used for mortgage applications and statutory pay calculations.

Common Questions

Pension FAQ

Can I opt out of my workplace pension?

Yes, you can opt out within one month of being enrolled and receive a full refund of any contributions. After one month, you can stop contributing but may not get a refund. Your employer must re-enrol you every three years. Opting out means you lose the free employer contributions and tax relief.

What happens to my pension if I change jobs?

Your pension pot stays invested with the existing scheme unless you choose to transfer it. You can transfer previous pensions to your new employer's scheme or to a personal pension. There is no obligation to transfer, and keeping multiple pension pots is perfectly fine. Compare charges and investment options before deciding.

Can I contribute more than the minimum?

Yes. You can increase your employee contributions at any time, and you will receive tax relief on the additional amount. The annual allowance for tax-relieved contributions is £60,000 (2025/26) or your annual earnings, whichever is lower. Ask your employer if they offer matching — many will increase their contribution if you increase yours.

When can I access my pension?

You can normally access your workplace pension from age 55 (rising to 57 from April 2028). You can take up to 25% as a tax-free lump sum. The remainder can be taken as drawdown income, used to buy an annuity, or a combination. Early access before age 55 is only possible in cases of serious ill health.

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