Minimum Pension Contributions Calculator 2026 (Auto-Enrolment)

The minimum auto-enrolment contributions are: total 8% of qualifying earnings, split as at least 3% from the employer and at least 5% from the employee (including tax relief). The employer must pay at least 3%, with the employee making up the remainder.

Qualifying earnings for 2025/26 are earnings between £6,240 and £50,270 per year (£520/month lower limit; £4,189/month upper). Contributions are calculated on the portion of earnings within this band — not all of salary.

Yes. Employers can use an alternative pensionable pay definition (all earnings above zero, or total pay including bonuses) as long as the total contribution meets or exceeds what would have been paid under the qualifying earnings method.

Qualifying earnings include: salary, wages, commission, bonuses, overtime, statutory sick pay, statutory maternity/paternity/adoption pay. They do not include benefits in kind, pension contributions paid by the employer, or expenses reimbursements.

Yes — employees can opt out within 1 month of enrolment. If they opt out, they get back any contributions already made. Employers cannot encourage or induce opting out. Employees who opt out will be re-enrolled every 3 years.

HMRC and The Pensions Regulator enforce compliance. Penalties start at £400 (fixed penalty notice) and escalate to daily fines of £50–£10,000 depending on company size. Persistent non-compliance can result in criminal prosecution.

The 5% is the net contribution from the employee. If the pension uses 'relief at source', the employee contributes 4% (net) and HMRC adds 1% basic rate tax relief, totalling 5% gross. If the pension uses 'net pay arrangement', the full 5% is deducted before tax.

Yes — the minimums are a floor, not a ceiling. Both employer and employee can contribute more. Many financial advisers recommend contributing at least 12-15% of salary (combined) to achieve a comfortable retirement income.