Pension contribution
Estimate employee and employer pension contributions based on salary and contribution rates.
By default, contributions are calculated on your full salary. Enter a lower limit if you want to use qualifying earnings only.
Results
These are estimates based on your inputs.
How this calculator works
We calculate contributions by applying the employee and employer percentages to your contribution salary. If you enter a lower limit, contributions are calculated on salary above that threshold (qualifying earnings).
This provides a simplified estimate and does not account for tax relief or salary sacrifice.
What this calculator does
This pension contribution calculator estimates how much you and your employer contribute each year based on your salary and contribution percentages. It helps you understand the total going into your pension.
You can also use a lower limit to estimate contributions on qualifying earnings rather than full salary.
How the formula works
Contributions are calculated as a percentage of the salary basis. If you leave the lower limit blank, we use your full salary. If you enter a lower limit, we subtract it from your salary and apply the percentages to the remaining amount.
This mirrors common workplace schemes that use qualifying earnings for auto-enrolment.
Worked example
Example: salary £45,000, employee 5%, employer 3%. Contributions on full salary give £2,250 employee and £1,350 employer per year, for a total of £3,600.
If you use a lower limit of £6,240, contributions are calculated on £38,760 instead.
Common mistakes
- Forgetting that some schemes use qualifying earnings rather than full salary.
- Confusing employee and employer contribution rates.
- Assuming tax relief is included in the contribution amount.
- Using monthly salary in an annual field.
When to use this calculator
Use this to estimate annual pension contributions for budgeting or comparing employer pension offers. If you want to see the impact on your take-home pay, use the Take-home salary calculator alongside this.
FAQs
Does this include tax relief?
No. This calculator estimates gross contributions. Tax relief depends on your pension scheme and tax band.
What are qualifying earnings?
Qualifying earnings are the portion of salary between lower and upper thresholds used for auto-enrolment. This calculator uses only a lower limit for a simple estimate.
Should I include employer matching?
Yes. Enter your employer’s contribution rate to see the total going into your pension.