Pension Contribution Calculator 2026
Calculate workplace pension contributions under auto-enrolment for 2026-27. Work out employer and employee contributions on qualifying earnings.
Use this calculator to work out workplace pension contributions under auto-enrolment rules.
Auto-Enrolment Requirements
All employers must provide a workplace pension for eligible workers. The minimum contributions are:
| Contribution | Minimum Rate |
|---|---|
| Employer | 3% |
| Employee | 5% |
| Total | 8% |
Contributions are calculated on qualifying earnings - the band between the lower and upper thresholds.
Qualifying Earnings Thresholds (2026-27)
| Threshold | Annual | Monthly | Weekly |
|---|---|---|---|
| Lower | £6,240 | £520 | £120 |
| Upper | £50,270 | £4,189 | £967 |
Only earnings between these thresholds count for calculating contributions.
Example
Employee earning £30,000/year:
- Qualifying earnings: £30,000 - £6,240 = £23,760
- Employer contribution (3%): £712.80/year
- Employee contribution (5%): £1,188/year
- Total: £1,900.80/year
Who Must Be Auto-Enrolled?
Workers must be automatically enrolled if they are:
- Aged 22 to State Pension age
- Earning over £10,000 per year
- Working in the UK
Other Workers Can Opt In
| Category | Age | Earnings | Employer Contribution? |
|---|---|---|---|
| Eligible | 22-SPA | £10,000+ | Yes - mandatory |
| Non-eligible | 16-74 | £6,240-£10,000 | Yes - if they opt in |
| Entitled | 16-74 | Under £6,240 | No |
Tax Relief on Pension Contributions
Employee contributions receive tax relief:
- Basic rate taxpayers get 20% relief at source
- Higher rate taxpayers claim extra 20% via self-assessment
- Additional rate taxpayers claim extra 25% via self-assessment
Example Tax Relief
Employee contributing £100:
- Cost to employee: £80 (after tax relief)
- Amount in pension: £100
Employer Duties
As an employer, you must:
- Assess your workforce to identify eligible workers
- Enrol eligible workers into a qualifying pension scheme
- Contribute at least 3% of qualifying earnings
- Communicate with workers about their pension
- Re-enrol workers every 3 years if they've opted out
Alternative Schemes
Instead of qualifying earnings, employers can use:
- Set 1: 9% on pensionable earnings (all earnings, 4% employer minimum)
- Set 2: 8% on pensionable earnings (at least basic pay, 3% employer minimum)
- Set 3: 7% on total earnings (3% employer minimum)
These alternatives must meet the same overall contribution levels.
Frequently Asked Questions
- What are the minimum pension contributions?
- The minimum total contribution is 8% of qualifying earnings. Employers must contribute at least 3%, with employees contributing the remaining 5%. Employers can choose to pay more.
- What are qualifying earnings for pension contributions?
- Qualifying earnings are the band of earnings between £6,240 and £50,270 per year (2026-27, unchanged from 2025-26). Only earnings within this band are used to calculate pension contributions.
- Who has to be auto-enrolled?
- Workers aged 22 to State Pension age who earn over £10,000 per year must be automatically enrolled into a workplace pension. Those earning less can opt in.
- Can employees opt out of auto-enrolment?
- Yes, employees can opt out within one month of being enrolled. However, they must be re-enrolled every 3 years if still eligible. Employers cannot encourage opting out.