Workplace Pension Calculator 2025/26

Q: Can I opt out of workplace pension?

Yes, you can opt out within 1 month of being enrolled. You'll get back any contributions deducted. However, you'll lose the free employer contribution (typically 3% of salary), which is essentially free money.

Annual Salary (£)

Your Contribution (%)

Employer Contribution (%)

Calculation Basis

Your Tax Rate

Your Contribution

Employer Contribution

Tax Relief

Total Annual

Monthly into Pension

Real Cost to You

Annual Salary (£)

Your Current Age

Planned Retirement Age

Your Contribution (%)

Employer Contribution (%)

Existing Pension Pot (£)

Expected Annual Growth (%)

Years to Retirement

Your Contributions

Employer Contributions

Investment Growth

Projected Pot

Annual Income (4%)

Employer Pension Costs

Number of Employees

Average Annual Salary (£)

Employer Contribution Rate (%)

Per Employee (Annual)

Per Employee (Monthly)

Total Annual Cost

Total Monthly Cost

Auto-Enrolment Contribution Rates 2025/26

Contribution	Minimum Rate	On Salary £35,000
Employee	5%	£1,438/year
Employer	3%	£863/year
Total	8%	£2,301/year

Based on qualifying earnings (£6,240 - £50,270). Your employer may use different calculation methods.

Understanding Qualifying Earnings

For 2025/26, minimum pension contributions are calculated on "qualifying earnings":

Lower threshold: £6,240 per year
Upper threshold: £50,270 per year
Only earnings within this band count for minimum contributions

Example Calculation

 Annual Salary: £35,000

 Qualifying Earnings: £35,000 - £6,240 = £28,760

 Employee (5%): £28,760 × 5% = £1,438/year

 Employer (3%): £28,760 × 3% = £863/year

 Total: £2,301/year

Note: Many employers calculate on full salary or basic pay instead of qualifying earnings. This is more generous for employees!

The Power of Tax Relief

Pension contributions attract tax relief, making them very efficient:

Tax Rate	You Pay	Tax Relief	Goes into Pension
Basic (20%)	£80	£20	£100
Higher (40%)	£60*	£40	£100
Additional (45%)	£55*	£45	£100

*Higher/additional rate taxpayers claim extra relief through Self Assessment

Don't Miss Out: If you're a higher rate taxpayer, claim your additional tax relief! The pension provider automatically claims 20%, but you must claim the extra 20-25% through your tax return.

Should You Opt Out?

You can opt out of your workplace pension, but consider:

You Lose:

Free employer contribution - typically 3-5% of salary
Tax relief - 20-45% boost on your contribution
Compound growth - decades of investment returns

Opting Out Might Make Sense If:

You have high-interest debt to pay off first
You're very close to retirement with another pension
Your income is below the personal allowance anyway

Recommendation: For most people, staying enrolled is the right choice. The employer contribution alone is essentially free money - a 3% contribution on a £30,000 salary adds £900/year to your pension at no cost to you.

Frequently Asked Questions

What is the minimum workplace pension contribution?

The minimum total contribution is 8% of qualifying earnings. Employers must pay at least 3%, and employees pay the remaining 5%. Qualifying earnings are between £6,240 and £50,270 for 2025/26.

How much should I put into my workplace pension?

Financial advisers often suggest contributing at least 12-15% of salary (including employer contribution) for a comfortable retirement. The minimum 8% may not be enough, especially if you start saving later in life.

Do I pay tax on workplace pension contributions?

No, your pension contributions come from pre-tax income, so you get automatic tax relief. A £100 contribution only costs £80 for basic rate taxpayers. Higher rate taxpayers can claim additional relief through Self Assessment.

What are qualifying earnings for auto-enrolment?

Qualifying earnings for 2025/26 are earnings between £6,240 and £50,270 per year. Only this band counts for minimum contributions. Some employers use full salary instead, which is more generous.

Can I opt out of workplace pension?

Yes, you can opt out within 1 month of being enrolled. However, you'll lose the free employer contribution (typically 3% of salary), which is essentially free money. Think carefully before opting out.

When can I access my workplace pension?

Currently, the minimum pension age is 55 (rising to 57 in 2028). You can take 25% as a tax-free lump sum and the rest is taxed as income. You don't have to stop working to access your pension.

Pro Tips for Accurate Results

Double-check your input values before calculating
Use the correct unit format (metric or imperial)
For complex calculations, break them into smaller steps
Bookmark this page for quick future access

Understanding Your Results

Our Workplace Pension Calculator provides:

Instant calculations - Results appear immediately
Accurate formulas - Based on official UK standards
Clear explanations - Understand how results are derived
2025/26 updated - Using current rates and regulations

Common Questions

Is this calculator free?

Yes, all our calculators are 100% free to use with no registration required.

Are the results accurate?

Our calculators use verified formulas and are regularly updated for accuracy.

Can I use this on mobile?

Yes, all calculators are fully responsive and work on any device.

Workplace Pension Calculator