Pension Auto-Enrolment Calculator 2024/25
Calculate employer and employee pension contributions under auto-enrolment rules. The 2024/25 qualifying earnings band is £6,240–£50,270. Minimum total contribution: 8% (3% employer + 5% employee including tax relief).
Auto-Enrolment Contribution Calculator
2024/25 qualifying earnings band: £6,240 – £50,270
Employee gross annual salary
Choose whether to enter contribution rates as a % of qualifying earnings or as fixed £ amounts
Minimum is 3% of qualifying earnings
Minimum is 5% of qualifying earnings (includes tax relief)
5 Auto-Enrolment Planning Tips
- Salary sacrifice saves NI: Structuring contributions as salary sacrifice reduces National Insurance for both employer (13.8%) and employee — a significant saving on top of income tax relief.
- Review rates annually: The legal minimum (8% total) is rarely optimal for retirement — encourage staff to review contributions and consider increasing by 1% per year.
- Re-enrolment every 3 years: You must re-enrol any opted-out eligible workers every 3 years on your re-enrolment date, whether they opt out again or not.
- NEST is free for employers: The government-backed NEST scheme has no employer set-up or administration charges — ideal for small businesses without an existing scheme.
- Staging dates matter: Your legal start date for auto-enrolment duties (staging date) is based on your PAYE reference number. Check your duties start date on The Pensions Regulator website.
How Pension Auto-Enrolment Works
Since 2012, UK employers must automatically enrol eligible workers into a workplace pension and make minimum contributions. Eligible workers are aged 22–state pension age and earn above £10,000/year from a single employer.
2024/25 Qualifying Earnings Band
- Lower threshold: £6,240/year (£520/month)
- Upper threshold: £50,270/year (£4,189/month)
- Minimum employer contribution: 3% of qualifying earnings
- Minimum employee contribution: 5% of qualifying earnings (incl. tax relief)
FAQs
What happens if I miss my re-enrolment duties?
The Pensions Regulator can issue fixed penalty notices (£400) and escalating penalties of up to £10,000/day for larger employers who fail to meet re-enrolment deadlines.
Are contributions tax-relieved?
Yes — employee contributions receive income tax relief at your marginal rate. Basic-rate taxpayers effectively pay £80 for a £100 contribution. Higher-rate taxpayers can claim additional relief through self-assessment.