Workplace Pension & Auto-Enrolment Calculator

Auto-enrolment is the legal requirement for UK employers to automatically enrol eligible workers into a qualifying workplace pension scheme and to make a minimum contribution on their behalf. It started in 2012 and applies to every employer with at least one eligible worker. The Pensions Regulator enforces the rules and can issue compliance notices and fines where employers fail to enrol staff or underpay the minimum contribution.

The minimum contribution for 2026/27 is 8% of qualifying earnings in total, made up of at least 3% from the employer and at least 5% from the employee (including any tax relief). The figures in the table below show the minimums on a £35,000 salary for context, both on qualifying earnings and on full salary.

Many employers voluntarily pay more than 3% to attract staff — enhanced schemes of 6% or 8% employer contributions are common in professional and finance roles.

An employer must enrol a worker who is aged 22 up to State Pension age, earns more than £10,000 a year in a single employment, and normally works in the UK. Workers outside these criteria can usually opt in and may still receive employer contributions. Agency workers, directors and some offshore employees are treated under specific rules — GOV.UK's workplace pensions guidance sets out the edge cases.

Some schemes calculate contributions on qualifying earnings — a band of pay that excludes the first £6,240 a year and any earnings above £50,270 a year for 2026/27 — while others apply the percentages to the full salary. The minimum total of 8% is the same, but the pound figure differs: a worker on £35,000 contributes about the same under either basis, while a worker on £80,000 will pay less on the qualifying-earnings basis because the band is capped.

Employee contributions normally attract tax relief. Under relief at source the employee pays net and the scheme reclaims the 20% basic-rate relief from HMRC (higher-rate relief must be claimed via Self Assessment). Under net pay arrangements the employer deducts the gross contribution before tax, so the employee gets full relief in-year. Employer contributions are an allowable business expense for corporation tax and are not subject to employer National Insurance, which is one reason enhanced schemes are tax-efficient.

Enter the gross salary and the employee and employer percentages to read off each side's annual contribution and the total. Compare with the 2026/27 auto-enrolment minimums of 3% and 5% to check you are meeting the legal floor, and check your scheme's basis if the figures look off. The employer National Insurance calculator can also help you see how the on-cost of an employee is split between NI and pension.

Workplace pension contributions may be calculated on qualifying earnings or on total pensionable pay. Qualifying earnings use only pay within the statutory band, while total earnings apply the selected percentage to the whole salary. This distinction is why two employers can both say they pay 3% but produce different annual pension amounts. When comparing providers or payroll output, check the contribution basis before comparing the percentage.

Tax relief can be delivered through net pay, relief at source or salary sacrifice. Net pay reduces taxable pay before tax is calculated. Relief at source deducts contribution after tax and the provider claims basic-rate relief. Salary sacrifice reduces contractual salary in exchange for employer pension contribution, which can save employee and employer NI. The calculator gives contribution amounts; the salary sacrifice pension calculator shows the NI-saving effect.

Before treating a pension contribution as compulsory, check age, earnings, worker status and postponement. Eligible jobholders must be automatically enrolled. Non-eligible jobholders and entitled workers have different rights to opt in or join. Employers should keep records of assessment, postponement notices, opt-outs and re-enrolment dates because pension duties are enforced separately from payroll tax.