Calculate your employee and employer pension contributions under auto-enrolment for 2026-27.
This calculator provides estimates based on standard auto-enrolment rules. Your actual contributions may vary. Always check with your employer or pension provider.
Workplace pensions are a cornerstone of retirement saving in the UK. Since auto-enrolment was introduced, employers must automatically enrol eligible workers into a pension scheme and make minimum contributions. For the 2026-27 tax year, the minimum total contribution is 8% of qualifying earnings, split as at least 3% from the employer and 5% from the employee. Qualifying earnings for 2026-27 fall between the lower threshold of GBP 6,240 and the upper threshold of GBP 50,270. Only earnings within this band are pensionable under the qualifying earnings basis. If you earn GBP 30,000, your pensionable pay is GBP 23,760 (GBP 30,000 minus GBP 6,240), not the full GBP 30,000. Some employers offer more generous schemes. Total earnings schemes calculate contributions on your entire salary, resulting in higher contributions. Others may offer enhanced contribution rates -- for example, matching your contributions pound for pound up to 6% or 8% of salary. Salary exchange (also called salary sacrifice) is an arrangement where you agree to a lower salary in exchange for your employer making a larger pension contribution. The advantage is that neither you nor your employer pays National Insurance on the exchanged amount. For a basic rate taxpayer earning GBP 30,000, salary exchange saves around 8% in employee NI on the pension contribution. Understanding the difference between these scheme types and knowing your contribution rates helps you plan your retirement savings effectively. This calculator shows exactly how much goes into your pension each month and year, the pensionable pay used, and the NI savings available through salary exchange.
To calculate your workplace pension contributions: 1. Enter your annual salary. This is your gross annual salary before any deductions. Use the salary figure from your employment contract. 2. Enter your employee contribution rate. The auto-enrolment minimum is 5%, but your employer may set a different default or allow you to choose a higher rate. Check your payslip or pension documentation. 3. Enter your employer contribution rate. The minimum is 3%, but many employers contribute more. Check your employment contract or benefits documentation. 4. Select your pension scheme type. "Qualifying Earnings" is the most common basis for auto-enrolment. "Total Earnings" uses your full salary. "Basic Salary" excludes overtime and bonuses. 5. Toggle salary exchange if your employer offers it. This shows the additional NI savings you receive by having your pension contribution taken before NI. 6. Review the results. The calculator shows annual and monthly contributions, pensionable pay, and NI savings. Use the bar chart to visualise the employee and employer contribution split.
Workplace pension contributions are calculated based on pensionable pay and contribution rates. For qualifying earnings: 1. Pensionable pay = annual salary minus GBP 6,240, capped at GBP 50,270 minus GBP 6,240 = GBP 44,030 2. Employee contribution = pensionable pay x employee rate (e.g. 5%) 3. Employer contribution = pensionable pay x employer rate (e.g. 3%) For total earnings: 1. Pensionable pay = full annual salary 2. Contributions = salary x contribution rates Tax relief: - Employee contributions receive tax relief at your marginal rate - Monthly tax relief = monthly contribution x tax rate (20% basic, 40% higher) Salary exchange NI savings: - NI saving = exchanged amount x employee NI rate - Employee NI is 8% on earnings between GBP 12,570 and GBP 50,270, and 2% above GBP 50,270 - Only applies to the portion of earnings above the NI primary threshold Example: GBP 30,000 salary, 5% qualifying earnings contribution - Pensionable pay: GBP 30,000 - GBP 6,240 = GBP 23,760 - Employee: GBP 23,760 x 5% = GBP 1,188 per year (GBP 99 per month) - Employer: GBP 23,760 x 3% = GBP 712.80 per year
Inputs: Salary: GBP 30,000, Employee: 5%, Employer: 3%, Qualifying earnings
Inputs: Salary: GBP 60,000, Employee: 5%, Employer: 3%, Qualifying earnings
Inputs: Salary: GBP 35,000, Employee: 5%, Employer: 3%, Qualifying earnings, Salary exchange
Auto-enrolment applies to workers aged 22 to State Pension age who earn more than GBP 10,000 per year. Workers below these thresholds can opt in and still receive employer contributions if they earn between GBP 6,240 and GBP 10,000. Many employers offer contribution matching, where they increase their contribution to match yours up to a cap. For example, an employer might contribute 3% as standard but match up to 6% if you contribute the same. Always contribute enough to get the full employer match -- it is effectively a guaranteed 100% return on your money. If you have multiple jobs, each employer must auto-enrol you separately. Be aware that the qualifying earnings thresholds apply per employment, not across all jobs combined. The auto-enrolment fee cap of 0.75% per year applies to default investment funds in qualifying schemes. If you choose a different fund, the cap may not apply. Lower fees mean more of your returns stay in your pot. Salary exchange reduces your gross salary for NI purposes. This affects your entitlement to contribution-based benefits (like Statutory Sick Pay and Maternity Pay) and your State Pension record if your salary falls below the National Insurance lower earnings limit. For most earners, this is not a concern, but check if it affects you. Your employer cannot reduce your total remuneration by introducing salary exchange. Your employer's NI saving should either be passed on to you (as extra pension contribution) or retained, but your overall package should not decrease.