🇬🇧 United Kingdom

Workplace Pension Calculator

Calculate your auto-enrolment contributions for 2025/26. See monthly employee and employer amounts, project your pot at retirement, and discover how salary sacrifice saves you NI.

£
Your gross annual salary before tax
%
Minimum 5% for auto-enrolment
%
Minimum 3% for auto-enrolment
Toggle off = qualifying earnings (£6,240-£50,270). Toggle on = full salary.

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How to Use This Calculator

My Contributions tab

Enter your annual salary, employee contribution rate (default 5%), and employer contribution rate (default 3%). Toggle between qualifying earnings basis (only earnings between £6,240 and £50,270 are pensionable) and full salary basis. The calculator shows your monthly and annual contributions, tax relief, and how the two bases compare.

Pot Projection tab

See how your pension pot grows over time. Enter your current age, retirement age, current pot value, and assumptions for salary growth and investment returns. The calculator projects your pot year-by-year and compares with and without employer contributions, so you can see exactly how much your employer match is worth.

Salary Sacrifice tab

Calculate the NI savings from making pension contributions via salary sacrifice. Your salary is reduced on paper, saving you 8% employee NI and your employer 15% employer NI. If your employer passes on their NI saving, even more goes into your pension. The calculator shows exactly how much extra ends up in your pot.

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The Formula

Workplace pension contributions are calculated as a percentage of pensionable earnings:

Qualifying Earnings = min(Salary, £50,270) − £6,240

Employee Contribution = Pensionable Earnings × Employee Rate
Employer Contribution = Pensionable Earnings × Employer Rate

Total Annual Pension = Employee + Employer contributions
Tax Relief (basic rate) = Employee Contribution × 20%

Salary Sacrifice NI Saving:
Employee NI saved = Sacrifice Amount × 8% (on £12,570–£50,270)
Employer NI saved = Sacrifice Amount × 15% (from April 2025)

Pot Projection:
Pot(year N) = (Pot(N−1) + Annual Contributions) × (1 + Growth Rate)

The qualifying earnings basis means only the slice of your salary between £6,240 and £50,270 counts for pension contributions. On a £30,000 salary, that's £23,760 pensionable — not the full £30,000. Some employers use full salary or basic salary basis, which gives higher contributions.

Auto-enrolment minimum is 8% total (5% employee + 3% employer) on qualifying earnings. Many employers offer more generous schemes above this minimum.

Example

Sarah — Admin Assistant, 32, Birmingham, £28,000

Sarah earns £28,000 and her employer uses the auto-enrolment minimums: 5% employee and 3% employer on qualifying earnings basis.

My Contributions tab

Annual salary£28,000
Employee rate5%
Employer rate3%
BasisQualifying earnings
Qualifying earnings£21,760 (£28,000 − £6,240)
Employee contribution£1,088/yr (£91/mo)
Employer contribution£653/yr (£54/mo)
Total into pension£1,741/yr (£145/mo)
Tax relief (basic rate 20%)£218/yr

Sarah's effective cost is only £870/yr after tax relief, but £1,741 goes into her pension. That's a 100% uplift from employer match and tax relief.

Salary Sacrifice comparison

If Sarah switches to salary sacrifice, she also saves NI:

Employee NI saving (8%)£87/yr
Employer NI saving (15%)£163/yr
Total NI saved£250/yr

If her employer passes on their £163 NI saving, Sarah's pension pot gets an extra £163/yr — money that would otherwise go to HMRC.

FAQ

Auto-enrolment is a UK law requiring employers to automatically enrol eligible workers into a workplace pension scheme. You qualify if you are aged 22 to State Pension age, earn at least £10,000 per year, and work in the UK. The minimum contribution is 8% of qualifying earnings (5% from you, 3% from your employer). You can opt out, but you lose the free employer contribution. Source: The Pensions Regulator.
Qualifying earnings are the portion of your salary between the lower threshold (£6,240) and upper threshold (£50,270) for the 2025/26 tax year. Only this band is used to calculate minimum auto-enrolment contributions. For example, if you earn £30,000, your qualifying earnings are £23,760 (£30,000 minus £6,240). Some employers use a more generous basis such as full basic salary. These thresholds are reviewed and uprated by the government each year. Source: GOV.UK.
Pension tax relief means the government tops up your pension contributions based on your income tax rate. There are two methods: Relief at source — you contribute from net (after-tax) pay and your pension provider claims the basic rate (20%) from HMRC. Higher and additional rate taxpayers claim extra relief via Self Assessment. Net pay arrangement — contributions come from your gross pay before tax, so you get full relief automatically at your marginal rate. The annual allowance for pension contributions with tax relief is £60,000 (2025/26). Source: HMRC.
Salary sacrifice is an arrangement where you agree to reduce your contractual salary, and your employer pays the equivalent amount into your pension instead. Because your gross salary is lower, you save on employee National Insurance (8% on £12,570-£50,270) and your employer saves on employer NI (15% from April 2025). Many employers pass on some or all of their NI saving to your pension, giving you even more. The downside: lower gross salary can affect mortgage applications, statutory maternity/sick pay, and other salary-linked benefits. It is generally worth it if your employer passes on their NI saving and you do not plan to apply for a mortgage soon.
You can currently access your workplace pension from age 55 (rising to 57 from April 2028). You can take 25% of your pot as a tax-free lump sum, and the remaining 75% is taxed as income when you withdraw it. Options include: flexi-access drawdown (keep pot invested and withdraw as needed), annuity (buy a guaranteed income for life), or take cash in chunks (uncrystallised funds pension lump sum). The UK State Pension age is currently 66, rising to 67 between 2026 and 2028.

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