This calculator works out what goes into a workplace pension each year: the employee’s contribution, the employer’s contribution, the tax relief and the cost to the employee after that relief. For 2026/27 auto-enrolment contributions are normally worked out on qualifying earnings between £6,240 and £50,270, and the legal minimum is 8% of that band in total, with at least 3% from the employer. Anyone aged 22 to State Pension age earning over £10,000 a year must be enrolled automatically.
Quick answers
- Qualifying earnings 2026/27: contributions are worked out on pay between £6,240 and £50,270 a year, according to the Pensions Regulator’s thresholds.
- Minimum contribution: the total must be at least 8% of qualifying earnings, and the employer must pay at least 3% of it.
- Earnings trigger: a worker earning over £10,000 a year (£833 a month) must be enrolled automatically if they are aged 22 or over and under State Pension age.
- Relief at source: the employee pays 80% of their contribution and the scheme claims the other 20% from HMRC, even for someone who pays no income tax.
- Net pay arrangement: the contribution comes off pay before income tax, so relief is given at the employee’s own rate, but only on income that would have been taxed.
- Higher rate relief: under relief at source, higher and additional rate taxpayers claim the extra relief themselves through Self Assessment or by contacting HMRC.
How the calculator works
The calculator takes five inputs and follows the auto-enrolment rules.
- Annual salary. Your gross pay for the year.
- Employee and employer percentages. The rates in your scheme, for example 5% and 3%.
- Basis. Choose qualifying earnings (salary capped at £50,270, minus £6,240) or full salary. Many schemes use full basic pay instead of the band.
- Tax relief method. For relief at source, relief is 20% of your gross contribution. For net pay, the calculator works out your income tax with and without the contribution, using 2026/27 bands for England, Wales and Northern Ireland, and shows the difference.
- Minimum check. Whatever basis you choose, the calculator compares the total and the employer share with 8% and 3% of qualifying earnings. If salary is below £10,000, it tells you automatic enrolment is not required.
The total is shown for the year and per month. Relief at source here is basic rate relief only.
Worked example
An employee earns £30,000 in a relief at source scheme, paying 5% with the employer paying 3% of qualifying earnings.
| Step | Working | Result |
|---|---|---|
| Qualifying earnings | £30,000 minus £6,240 | £23,760 |
| Employee contribution (gross) | 5% of £23,760 | £1,188 |
| Tax relief added by HMRC | 20% of £1,188 | £238 |
| Cost to the employee | £1,188 minus £238 | £950 |
| Employer contribution | 3% of £23,760 | £713 |
| Total into the pension | £1,188 plus £713 | £1,901 a year (£158 a month) |
The total of £1,901 is exactly 8% of £23,760, and the employer pays 3%, so these contributions meet the legal minimum. In a net pay scheme the relief on the same figures is also £238, because all of the contribution falls in the 20% band.
Mistakes employers and staff make with contributions
Most errors come from mixing up the pay that contributions are worked out on.
- Using full salary when the scheme uses qualifying earnings, or the reverse. 5% of £30,000 is £1,500; 5% of qualifying earnings is £1,188. Check the scheme rules before you set up payroll.
- Forgetting the employer minimum. A scheme that takes 7% from the employee and 1% from the employer reaches 8% but is not compliant, because the employer must pay at least 3%.
- Assuming net pay helps low earners. In a net pay scheme someone earning below the £12,570 personal allowance gets no tax relief through payroll, while relief at source still adds 20%.
- Not claiming higher rate relief. A higher rate taxpayer in a relief at source scheme only gets the 20% top-up automatically. The rest must be claimed.
For the employer side of the cost, see employer pension contributions and the employer cost calculator. Our guide to pension auto-enrolment covers duties and deadlines, and the pension tax relief calculator works out higher rate claims.
Sources
- Automatic enrolment earnings thresholds (The Pensions Regulator)
- Workplace pensions: what you, your employer and the government pay (GOV.UK)
- Rates and thresholds for employers 2026 to 2027 (HMRC)
- Budget 2026 Annex A: rates and allowances (HM Treasury)
Frequently asked questions
What is the minimum workplace pension contribution in 2026/27?
The minimum is 8% of qualifying earnings in total, of which the employer must pay at least 3%. Qualifying earnings are pay between £6,240 and £50,270 a year.
Is tax relief included in the 5% employee contribution?
Yes. In a relief at source scheme the 5% is the gross figure: the employee pays 4% from net pay and HMRC adds the other 1% as tax relief.
Do I have to be enrolled if I earn under £10,000?
Not automatically. Workers earning over £6,240 can ask to join and the employer must then contribute; workers earning less can ask to join but the employer does not have to contribute.
Why does the calculator show the same relief for both methods?
For a basic rate taxpayer both methods give 20% relief. The figures differ for higher rate taxpayers, where net pay gives 40% relief straight away, and for people earning below the personal allowance, where net pay gives none.