Employer Pension Contribution Calculator
Calculate auto-enrolment pension contributions on qualifying earnings with tax relief.
Last updated: April 2026 · Source: GOV.UK
Min 5%
Min 3%
Total Going Into Your Pension
£2,197.80/year
£183.15/month
| Your contribution (5%) | £1,188.00 | £99.00/mo |
| Employer contribution (3%) | £712.80 | £59.40/mo |
| Tax relief (20%) | £297.00 | |
| Total in pension | £2,197.80 |
Auto-enrolment minimums: 5% employee + 3% employer = 8% total on qualifying earnings (£6,240 – £50,270).
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Under auto-enrolment rules, employer contributions are calculated on qualifying earnings, which is the band of gross pay between £6,240 and £50,270 per year (2025/26 thresholds). The employer must contribute at least 3% of qualifying earnings, while the employee contributes 5% (including 1% tax relief). Total minimum contribution is 8% of qualifying earnings, not total salary.
The calculation first identifies qualifying earnings by subtracting the lower threshold from gross pay, capped at the upper limit. For someone earning £30,000, qualifying earnings are £30,000 minus £6,240, giving £23,760. The employer's 3% minimum on this amount is £712.80 per year. Many employers voluntarily contribute more, often matching employee contributions up to 5-10%.
Salary sacrifice arrangements alter the calculation: the employee gives up gross salary in exchange for additional employer pension contributions. This saves both employer and employee National Insurance (currently 13.8% employer, 8% employee on earnings between £12,570 and £50,270), making each pound of contribution more tax-efficient than relief at source.
Auto-enrolment contributions on a £35,000 salary
- Gross annual salary: £35,000
- Qualifying earnings: £35,000 - £6,240 = £28,760
- Employer minimum contribution (3%): £28,760 x 3% = £862.80/year
- Employee contribution (5% including tax relief): £28,760 x 5% = £1,438.00/year
- Total annual pension contribution (8%): £2,300.80/year (£191.73/month)
Source: GOV.UK
Frequently Asked Questions
- What does the Employer Pension Contribution Calculator do?
- Calculate auto-enrolment pension contributions on qualifying earnings with tax relief. All calculations are performed in your browser using official UK rates and thresholds.
- Are these figures guaranteed?
- No. Pension projections are estimates based on assumed growth rates and current contribution levels. Actual returns depend on investment performance, fees and future policy changes.
- What is the pension annual allowance?
- The pension annual allowance for 2025/26 is £60,000. This is the maximum you can contribute (including employer contributions) and receive tax relief. The allowance is tapered for high earners.