Qualifying earnings
The band of earnings used to calculate auto-enrolment pension contributions — between £6,240 and £50,270 for 2025/26.
Auto-enrolment minimum contributions (8% total: 3% employer + 5% employee) are calculated on qualifying earnings, NOT on your full salary. This means the first £6,240 and anything above £50,270 is excluded from the minimum calculation.
This catches many people out. Someone earning £30,000 has qualifying earnings of only £23,760 (£30,000 - £6,240), so the 3% employer minimum is just £713/year — only 2.4% of full salary. Some employers voluntarily calculate contributions on full salary, which is significantly more generous. Always check whether your employer uses qualifying earnings or full salary as the basis.
This calculator provides estimates based on 2025/26 tax rates and is not financial advice. Scottish taxpayers are subject to different income tax rates and bands. The calculations assume your salary is your only source of income and do not account for benefits in kind or other taxable income.
For personalised guidance on your pension contributions, speak to an FCA-regulated financial adviser. You can find one via Unbiased or VouchedFor.