How it works
Contribution = selected earnings basis × contribution percentage. The common minimum is 5% employee and 3% employer on qualifying earnings.
A worked example
On a £35,000 salary using qualifying earnings, 5% employee and 3% employer contributions total £2,301 a year.
What to keep in mind
The scheme decides which earnings count and how tax relief is applied. This estimate excludes investment growth, fees, salary sacrifice effects, take-home pay changes and contribution limits.
A common question
What are qualifying earnings?
For most automatic-enrolment schemes in 2026/27, they are annual earnings between £6,240 and £50,270. Check your scheme because it may use a different basis.
Sources & rates
Rates checked on 30 September 2026.
For general information and planning, not personalised financial or tax advice. Verify important decisions with a qualified adviser.