Employer Pension Cost Calculator 2025/26

Calculate auto-enrolment pension contributions using 2025/26 qualifying earnings (£6,240–£50,270).

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% of qualifying earnings
% of qualifying earnings
Under salary sacrifice the employer pays the employee's contribution directly, saving employer NI at 15% on that amount. The NI saving is shown below.
2025/26 qualifying earnings: £6,240 – £50,270 • Minimum total: 8% (3% employer)
Employer pension cost per year
£863
3% of £28,760 qualifying earnings
Qualifying earnings
£28,760
Employer contribution
£863
Employee contribution
£1,438
Total pension (annual)
£2,301
Employer pension % salary
2.5%
Qualifying earnings for 2025/26: £6,240 to £50,270. Pension contributions are on earnings within this band, not total salary.

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Frequently Asked Questions

What are qualifying earnings for auto-enrolment?
Qualifying earnings are the portion of pay used to calculate pension contributions. For 2025/26, this is earnings between £6,240 and £50,270 per year. Contributions are applied to earnings within this range only — not total salary — which is why the effective pension percentage appears lower than the stated rate for higher earners.
What are the minimum auto-enrolment contribution rates?
The legal minimum is 8% of qualifying earnings in total — at least 3% from the employer and the remainder from the employee. Most employers pay exactly 3% and employees contribute the remaining 5%. Employers may choose to pay more, which reduces the employee's required contribution.
How does salary sacrifice affect pension costs?
Under salary sacrifice, employees agree to reduce their gross salary and the employer pays that amount directly as pension contribution. This eliminates the employee's income tax and National Insurance on the sacrificed amount, and saves the employer National Insurance at 15% on the sacrificed sum. It is tax-efficient for both parties.