Pay & Salary

Auto-Enrolment Pension Calculator

Updated November 2026 · Free · No sign-up

Calculate auto-enrolment contributions — the UK workplace pension minimum: 8% of qualifying earnings (employer at least 3%) between the band thresholds (~£6,240-£50,270 — verify current), and what opting out really costs.

Quick answer: Auto-enrolment minimum: 8% of qualifying earnings — at least 3% from the employer, the rest (typically 5%, incl. tax relief) from you — on earnings between ~£6,240 and ~£50,270/yr. £30,000 salary → band earnings £23,760 → £158/month total, of which the employer pays £59.

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The Statutory Minimums

Total minimum8% of qualifying earnings
Employer floor3% (many pay more — matched schemes to 6-10% are the big win)
Qualifying band~£6,240 - £50,270/year (reviewed annually — verify)
EligibilityAuto-enrolled: 22 to State Pension age, earning £10,000+ (opt-in rights below)
Tax reliefYour share gets 20% relief automatically (relief-at-source adds it; net-pay deducts pre-tax); higher-rate payers in RAS schemes must CLAIM the extra 20% via self-assessment

Worked Examples

Example 1. £30,000, statutory basis: band = £23,760 → employer £713/yr + you £1,188 (£950 net of basic relief) = £1,901/yr saved for ~£79/month of take-home.

Example 2 — opting out. Opting out "saves" £79/month but forfeits the employer’s £59 + relief — a guaranteed ~100% instant return abandoned. Re-enrolment re-captures opt-outs every 3 years for a reason.

Example 3 — the higher-rate claim. £60,000 earner in a relief-at-source scheme: the extra 20% on contributions goes UNCLAIMED unless self-assessed — the UK’s most-missed refund.

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Levers

Employer matching above 3% is the cheapest raise in Britain — max it before ISAs. Salary-sacrifice versions add NI savings (8%/2% employee NI + employer 15% often shared). The band floor means low earners on multiple jobs may miss contributions entirely — opt-in rights exist from £6,240+. Thresholds and the under-review scope (18+ age, first-pound accrual proposals) change — verify at The Pensions Regulator.

Frequently Asked Questions

What are the auto-enrolment minimums?

8% of qualifying earnings total, with the employer paying at least 3% — on the ~£6,240-£50,270 band unless the scheme uses a better basis.

Who gets auto-enrolled?

Workers aged 22 to State Pension age earning £10,000+/year — others can opt in (with employer contributions from £6,240 of earnings).

What happens if I opt out?

You keep ~5% of band earnings in take-home but lose the 3% employer money and tax relief — and get re-enrolled every 3 years.

How does tax relief work?

Relief-at-source: 20% added automatically, higher-rate extra claimed via self-assessment; net-pay: contributions deduct pre-tax so relief is automatic at your marginal rate.

Is 8% enough for retirement?

Generally no — common guidance suggests 12-15%+ including employer money; 8% is a statutory floor, not a plan. Model your own target.

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✓ Formula verified  •  Last updated: November 3, 2026