Workplace Pension Employer Contribution Calculator 2026/27

Workplace Pension Employer Contribution Calculator

✓ Verified for 2026/27

Pension Setup

£
%
%
Employer Pension Cost
£713
£59 per month
Employee Pension Cost
£1,188
£99 per month
Total Annual Pot Added
£1,901
combined contributions
Pensionable Earnings
£23,760
basis for calculation

Pension Contribution Breakdown

Remaining Gross Salary £28,812
Employer Pension (3%) £713
Employee Pension (5%) £1,188
Total Employee Gross Cost £30,713
Salary 94%
Employer 2%
Employee 4%
ℹ️ Under the standard auto-enrolment rules, the minimum total pension contribution is 8% of qualifying earnings, of which the employer must pay at least 3%, and the employee pays 5%. Qualifying earnings range between £6,240 and £50,270.
🛡️
Verified for Accuracy (2026/27 Tax Year)
Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

  1. Input variables: Enter the relevant amounts, rates, or percentages in the form.
  2. Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
  3. Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.
With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.

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Frequently Asked Questions & Detailed Tax Guide

What are the workplace pension auto-enrolment rules in the UK?

Under the UK’s workplace pension auto-enrolment rules, all employers must automatically enrol eligible staff into a qualifying workplace pension scheme and make regular contributions. For the 2026/27 tax year, the minimum total contribution is **8%** of the employee’s qualifying earnings, of which the employer must contribute a minimum of **3%**, with the employee making up the remaining 5% (net of basic-rate tax relief). Eligible staff are those aged between 22 and State Pension age who earn more than the earnings trigger of **£10,000 per year** (or £833 per month).

What are Qualifying Earnings?

Qualifying earnings are the portion of an employee’s pay used to calculate pension contributions. It includes salary, wages, bonuses, commission, overtime, statutory sick pay, and parental pay. Rather than calculating contributions on the full gross salary, contributions are calculated only on earnings between a lower and upper threshold set annually by the government:

  • Lower Earnings Limit (LEL): £6,240 per year. Contributions are not paid on earnings below this limit.
  • Upper Earnings Limit (UEL): £50,270 per year. Contributions are capped at this limit.
  • Qualifying Earnings Band: Earnings between £6,240 and £50,270 (a maximum band of £44,030).

Step-by-Step Mathematical Calculation: Auto-Enrolment

Let’s calculate the monthly employer and employee pension contributions for an employee with a gross salary of £35,000:

  • 1. Annual Gross Salary: £35,000
  • 2. Deduct Lower Earnings Limit: £35,000 – £6,240 = £28,760 (Qualifying Earnings).
  • 3. Calculate Annual Employer Contribution (3%): £28,760 * 3% = £862.80 per year (**£71.90 per month**).
  • 4. Calculate Annual Employee Contribution (5%): £28,760 * 5% = £1,438.00 per year (**£119.83 per month**).
    – Because employee contributions get 20% tax relief at source, the employee only pays £95.86 net, and the government adds £23.97.
  • 5. Total monthly pot addition: £71.90 (Employer) + £119.83 (Employee) = **£191.73**.

Tax Expert Pro-Tips: Net Pay vs. Relief at Source

David Vance, CTA FCA, recommends: “Employers must choose between a ‘Net Pay’ or a ‘Relief at Source’ pension arrangement. Under Net Pay, contributions are deducted before tax, which automatically grants full tax relief to higher-rate taxpayers. Under Relief at Source, contributions are deducted after tax, and the pension provider claims the basic 20% tax relief back from HMRC. If you employ lower-paid staff earning under £12,570, use Relief at Source, as Net Pay schemes do not grant tax relief to those who pay no income tax.”

Legislative References

  • Pensions Act 2008 – Statutory framework for auto-enrolment and employer duties.
  • The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010.