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Pension Auto-Enrolment Cost Calculator (UK)

See your minimum employer pension contribution on qualifying earnings, for one employee or a whole team.

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What is the minimum employer pension contribution in the UK?

3% of qualifying earnings, the band between £6,240 and £50,270 for 2026-27. The total minimum is 8%, with the employee covering 5% including tax relief.

Where Compono fits

A pension is a retention tool that only works if people stay long enough to value it. Most do not leave over the pension, they leave over the manager, the workload or a fit that was wrong from the start. Compono reads culture fit at hire and engagement once people are in, so the money you put into keeping people has something to hold on to.

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How it's calculated

The minimum employer contribution is 3% of qualifying earnings, which for 2026-27 is the band between £6,240 and £50,270. Earnings below the lower limit and above the upper limit do not attract the minimum contribution, so the employer cost on a £60,000 salary is the same as on a £50,270 one. The total minimum contribution is 8%, made up of 3% employer and 5% employee, of which 1% is basic-rate tax relief. The earnings trigger for enrolling someone automatically is £10,000. Bands are frozen at 2025-26 levels for 2026-27. Employers using a certified alternative basis on full pensionable pay have different minimums, so this is the qualifying-earnings case.

New to the term? Read the plain-English definition of pension auto-enrolment in the HR Glossary.

Common questions

Is the 3% calculated on total salary?

No. It applies to qualifying earnings only, so the band between £6,240 and £50,270. This is why the employer cost on a £60,000 salary matches the cost on a £50,270 salary.

What is the auto-enrolment earnings trigger?

£10,000 a year. Above that, an eligible jobholder is enrolled automatically, though they can opt out.

Can we pay more than the minimum?

Yes, and many employers do, either as a higher percentage or on full pensionable pay using a certified alternative basis. This calculator shows the statutory floor on qualifying earnings.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with GOV.UK or your own adviser. Last reviewed July 2026.