Pension Contributions Calculator
Calculate auto-enrolment pension contributions — 2025/26 qualifying earnings band
Common Questions
What is auto-enrolment?
Auto-enrolment is the government's policy of requiring employers to automatically enrol eligible workers into a workplace pension. Since 2012, employers have had to offer and contribute to a pension for workers aged 22 to State Pension age who earn more than £10,000 per year. You can opt out, but you'll be re-enrolled every three years.
What are the minimum contribution rates?
The minimum rates are: employee 5% and employer 3% of qualifying earnings — a total of 8%. Many employers offer higher contributions, especially in the public sector. Some calculate contributions on total earnings (not just the qualifying band), which results in higher contributions from the same percentage rate.
What is salary sacrifice and how does it help?
Salary sacrifice means you agree to take a lower salary in exchange for a higher employer pension contribution of the same value. Because your contractual salary is lower, you pay less National Insurance (and potentially less income tax). Your employer also saves NI on that portion of pay — some employers pass these savings into your pension too.
When can I access my pension?
The minimum pension access age for private pensions is currently 55, rising to 57 in 2028. You can take up to 25% of your pension pot as a tax-free lump sum. The remainder is taxed as income when you withdraw it. The State Pension is separate and is currently payable from age 66 (rising to 67 between 2026 and 2028).
Enter your salary and contribution rates to see your pension breakdown.
2025/26 Key Figures
- Lower qualifying limit: £6,240/yr
- Upper qualifying limit: £50,270/yr
- Min employee contribution: 5%
- Min employer contribution: 3%
- Annual allowance: £60,000
- Auto-enrolment trigger: £10,000/yr
Related Calculators
What's included in this calculator
Logic for the £6,240–£50,270 statutory band.
Models Relief at Source vs Net Pay Arrangement.
See the exact NI savings for you and your employer.
Calculates contributions for matched-funding schemes.
Project your pot value into 2026 and beyond.
Checks against the £60,000 yearly tax-free limit.
How Workplace Pension Contributions Work
Workplace pensions in the UK are governed by auto-enrolment legislation, which requires employers to automatically enrol eligible workers and contribute on their behalf. The minimum contributions are 5% from the employee and 3% from the employer, calculated on qualifying earnings — the band of earnings between £6,240 and £50,270 per year in 2025/26. This means that even if you earn £60,000, contributions are only calculated on £44,030 (£50,270 minus £6,240) under the qualifying earnings basis.
Pension contributions attract tax relief, which effectively reduces the real cost to you. For a basic rate taxpayer, a £100 employee contribution only costs £80 from take-home pay, because the pension scheme claims 20% relief from HMRC. Higher and additional rate taxpayers can claim further relief through Self Assessment, reducing the net cost further.
Many employers calculate contributions on total earnings rather than just qualifying earnings, and some offer matched contributions above the minimum. These enhanced schemes can significantly boost your retirement pot. If your employer offers to match additional contributions, taking up that offer is one of the most tax-efficient financial decisions you can make.