Pension Contribution Calculator
Calculate your workplace pension contributions with tax relief and employer matching
Calculate Your Pension Contributions
Your Contribution
Employer Contribution
Total Monthly
Tax Relief
What This Means For You
How Pension Contributions Work
Auto-Enrolment Basics
All eligible employees are automatically enrolled into their employer’s workplace pension scheme. The minimum total contribution is 8% of qualifying earnings, with employers contributing at least 3%.
Qualifying Earnings
Contributions are calculated on earnings between £6,240 and £50,270 per year (2025/26). This includes salary, wages, bonuses, and commission before tax deductions.
Tax Relief Benefits
The government adds tax relief to your pension contributions. Basic rate taxpayers get 20% relief automatically, whilst higher rate taxpayers can claim additional relief.
Current Contribution Rates (2025/26)
| Contribution Type | Minimum Rate | Applied To |
|---|---|---|
| Total Minimum | 8% | Qualifying earnings (£6,240 – £50,270) |
| Employer Minimum | 3% | Qualifying earnings |
| Employee Contribution | 5% | Qualifying earnings (if employer pays minimum) |
Types of Pension Schemes
Relief at Source
With relief at source schemes, you pay 80% of your intended contribution, and the pension provider claims 20% tax relief from the government. This means a £100 contribution only costs you £80 if you’re a basic rate taxpayer.
Net Pay Arrangements
Net pay schemes deduct your pension contribution before calculating income tax. This gives immediate tax relief for basic rate taxpayers, but those earning under £12,570 may not benefit from tax relief.
Higher Rate Tax Relief
Higher rate taxpayers (40%) can claim an additional 20% tax relief through Self Assessment. Additional rate taxpayers (45%) can claim an extra 25% relief. Scottish taxpayers have different rates that may vary slightly.
Maximising Your Pension
Salary Sacrifice
Some employers offer salary sacrifice arrangements where you give up part of your salary in exchange for higher pension contributions. This can save both income tax and National Insurance contributions.
Additional Contributions
You can usually pay more than the minimum into your workplace pension. Extra contributions receive the same tax relief benefits, up to your annual allowance of £60,000 for most people.
Employer Matching
Many employers offer to match contributions above the minimum. Check if your employer will increase their contribution if you increase yours – this is free money you shouldn’t miss out on.
Frequently Asked Questions
If you earn less than £6,240 annually, you won’t be automatically enrolled into a workplace pension. However, you can still opt in and may be entitled to tax relief on contributions up to £2,880 per year.
Yes, you can opt out within one month of being enrolled and get a full refund of contributions. After this period, you can still opt out but won’t get contributions refunded. Your employer must re-enrol you every three years.
Each job is assessed separately for auto-enrolment. If you meet the criteria for multiple jobs, you’ll be enrolled in each employer’s scheme. Contributions from all schemes count towards your annual allowance.
During maternity leave, your contributions are based on the pay you receive (such as statutory maternity pay), whilst your employer continues contributing based on your pre-leave salary for at least 26 weeks.
Your pension pot remains yours when you change jobs. You can leave it where it is, transfer it to your new employer’s scheme, or consolidate multiple pensions. Each option has different benefits depending on your circumstances.
References
- HM Revenue and Customs. (2025). Rates and thresholds for employers 2025 to 2026. Available at: https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2025-to-2026
- Low Incomes Tax Reform Group. (2025). Pensions auto-enrolment: contributions. Available at: https://www.litrg.org.uk/pensions/paying-pensions/pensions-auto-enrolment-workplace-pensions/pensions-auto-enrolment-contributions
- HM Government. (2025). Tax on your private pension contributions: Tax relief. Available at: https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief
- The Pensions Regulator. (2019). Making contributions to your pension scheme. Available at: https://www.thepensionsregulator.gov.uk/en/employers
- MoneyHelper. (2025). Workplace pension calculator. Available at: https://www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot/workplace-pension-calculator