UK auto-enrolment qualifying earnings rules
Under statutory auto-enrolment rules, the minimum total contribution is 8% of qualifying earnings: minimum 3% from your employer and 5% from you (which includes 1% basic tax relief).
Qualifying earnings are capped between the Lower Earnings Threshold (£6,240) and the Upper Earnings Limit (£50,270). If your employer uses salary sacrifice, you also save employee National Insurance contributions (up to 8%).
Worked example: UK auto-enrolment contribution
On a £36,000 annual salary, qualifying earnings equal £29,760 (£36,000 - £6,240). An employee contributing 5% pays £124.00 per month gross, while the employer pays 3% (£74.40). With basic rate tax relief (20%), the net monthly cost to the employee is just £99.20.
Inputs for the uk pension contribution calculator
Earnings Basis
Select between statutory qualifying earnings (£6,240–£50,270) or unbanded full gross salary.
Salary Sacrifice Option
Toggle salary sacrifice to include National Insurance savings in the calculation.
CALCULATOR QUESTIONS
UK pension contribution calculator questions
What is salary sacrifice for UK pensions?
Salary sacrifice involves agreeing to reduce your gross contractual pay by the amount of your pension contribution. Your employer pays the full amount directly into your pension, saving both employee and employer National Insurance contributions.
Can higher rate taxpayers claim more relief?
Yes, 40% and 45% taxpayers can claim an additional 20% or 25% tax relief through their annual Self Assessment tax return or by contacting HMRC to adjust their PAYE tax code.