Workplace pension contributions – how much you and your employer must pay in

Enter your details into our Workplace pension contribution calculator to see how much you and your employer will typically pay into your pension.

The minimum you and your employer must usually contribute into your workplace pension is 8%, provided:

• your employer set up your pension automatically or
• you asked to join the scheme and your earnings are over £6,240 a year, £520 a month or £120 a week.

The 8% minimum contribution is typically made up of:

• 5% from your wages:
  • 4% from you
  • 1% from the government in tax relief
• 3% on top from your employer.

You might be able to pay in less than 5% if your employer contributes more.

After your workplace pension has been set up, your employer must contribute if you earn over £6,240 a year, £520 a month or £120 a week.

Employer contributions must be at least 3% of your wages, but they can choose to pay in more. Some employers might even match your contributions up to a certain limit.

If you earn less than £6,240 a year, your employer can choose whether to contribute.

Pension contributions are usually calculated as a percentage of your total earnings between £6,240 and £50,270. This is called your ‘qualifying earnings’. 

But your scheme might use a different calculation based on ‘pensionable earnings’ instead. This is often your basic salary without things like commission, bonuses and overtime. 

You can ask your employer which rules apply to you. 

Increasing the amount you pay into your pension can boost your retirement savings.

You can use our Pension calculator to see: 

• how much income you’re likely to need when you retire
• the income you’re on track to get with your current contributions 
• how much extra you could get by changing your contributions.