Auto enrolment pension calculator

See exactly how your workplace pension contribution splits between you, your employer and tax relief, per pay period and per year, on qualifying earnings or your full salary.

Figures for the 2026/27 tax year. Last reviewed 01-09-2026.

How auto-enrolment contributions are worked out

By law, most employees are automatically enrolled into a workplace pension, with a combined minimum contribution of 8% of earnings, of which at least 3% must come from your employer. The remaining 5% is typically split between you and tax relief — for a relief-at-source scheme, the 5% quoted already includes the government's basic-rate top-up, so only 4% actually leaves your pay.

That 8% minimum is usually calculated on qualifying earnings — the slice of your pay between £6,240 and £50,270 a year — rather than your whole salary. Earn £32,000 and your qualifying earnings are £25,760 (£32,000 minus the £6,240 lower limit), not the full £32,000. Some schemes instead use a total-pay basis, calculating contributions on your entire salary, which produces bigger contributions for the same percentage but isn't required by law.

Relief method matters for how the deduction shows up on your payslip, not for how much ends up in your pot at a given percentage. Under relief at source, your payslip deduction is smaller than the quoted percentage, because the provider tops it up afterwards. Under net pay, the full percentage comes off your gross pay before tax, and the tax saving shows up as a smaller drop in take-home pay rather than as a separate top-up.

A worked example

Take a £32,000 salary, the standard 5% employee / 3% employer split, on a qualifying earnings basis with relief at source. Qualifying earnings work out at £25,760, so the employee's gross contribution is £1,288 a year and the employer adds £772.80 — a total of £2,060.80 a year into the pension.

Of that £1,288, only £1,030.40 actually comes off the employee's pay, because the pension provider automatically adds £257.60 of basic-rate tax relief on top. Spread over 12 months, that's £85.87 a month from pay, £21.47 a month in tax relief, and £64.40 a month from the employer — £171.73 a month landing in the pension in total.

Switch the same scenario to net pay instead, and the numbers land in almost exactly the same place for a basic-rate taxpayer: the same £1,288 gross contribution, the same £257.60 of relief (delivered as a smaller tax bill rather than a top-up), and the same £1,030.40 net cost. The two methods only really diverge for higher-rate taxpayers, where relief at source requires an extra self-assessment claim to get the full rate of relief — see the pension tax relief calculator for that.

Qualifying earnings vs total pay

The qualifying earnings band exists because auto-enrolment was designed to mirror the State Pension's earnings structure, effectively ignoring the first slice of pay (roughly matching the personal allowance in spirit, though the two figures aren't the same) and capping out at the upper earnings limit. It means someone on a low salary contributes less in cash terms than someone earning £50,270 or more, even at the identical percentage.

A total-pay scheme is more generous at every income level, because there's no lower slice excluded and no upper cap on the earnings the percentage applies to. Some employers deliberately choose total-pay as a more valuable benefit; it isn't required, so it's worth checking your scheme documentation to see which basis your employer actually uses.

Checking you're getting at least the legal minimum

The legal minimum is 8% combined, with at least 3% from your employer — which by arithmetic means your own contribution (including relief) can be as low as 5%. If your scheme shows anything less than these figures, it's below the statutory minimum and worth raising with your employer or pension provider, since auto-enrolment minimums aren't optional once you're enrolled and earning above the earnings trigger.

It's common for schemes to offer more than the legal minimum, sometimes with the employer matching extra employee contributions pound for pound up to a cap. That's not modelled here, but it's worth checking your own scheme's rules — it can be one of the highest-return decisions available if your employer offers it.

The Scottish tax position

Under net pay, the tax relief shown here is calculated against your actual income tax band, which differs in Scotland. Scottish intermediate, higher, advanced and top-rate taxpayers get more relief per pound contributed than the flat 20% basic rate this calculator assumes for relief-at-source schemes — meaning a Scottish higher-rate taxpayer on net pay sees a bigger automatic tax saving than the same contribution would generate under relief at source without a self-assessment claim.

Frequently asked questions

Can I opt out of auto-enrolment?

Yes, though you'll usually be automatically re-enrolled roughly every three years if you're still eligible. Opting out means losing your employer's contribution too, not just your own, which is worth weighing carefully since it's effectively part of your overall pay package.

Why is my contribution based on £25,760 rather than my full £32,000 salary?

Because your scheme uses the qualifying earnings basis, which only counts pay between £6,240 and £50,270 a year. It's the statutory minimum approach — some employers choose to calculate contributions on your whole salary instead (the total-pay basis), which this calculator also lets you model.

Does the 5% employee contribution really include tax relief?

For a relief-at-source scheme, yes — the commonly quoted "5%" employee contribution is a gross figure that already includes the government's 20% basic-rate top-up. In cash terms, only around 4% of qualifying earnings actually comes off your pay; the rest arrives automatically from HMRC via your provider.

What's the difference between relief at source and net pay for auto-enrolment?

Both get you to the same total contribution for a basic-rate taxpayer, they just get there differently. Relief at source deducts a smaller amount from your pay and tops it up afterwards; net pay deducts the full contribution from gross pay before tax, so the tax saving shows up as a smaller drop in take-home pay rather than as a visible top-up.

Is 8% actually enough to retire on?

The 8% legal minimum is a floor, not a target — most guidance suggests noticeably higher total contributions are needed for a comfortable retirement income, depending on when you start and what other savings you have. This calculator shows what the legal minimum produces; the how much do I need to retire calculator works out what you'd actually need for a given lifestyle.

Does my bonus count towards auto-enrolment contributions?

It depends on your scheme's definition of pensionable pay — many include regular bonuses within qualifying earnings (which cover most types of pay up to the upper limit), but scheme rules vary, so it's worth checking your specific pension documentation rather than assuming either way.