Pension Contribution Calculator UK 2026
Calculate your workplace pension contributions, employer contributions, tax relief, and National Insurance savings instantly. Our free calculator shows exactly how much goes into your pension and what it really costs you after tax relief.
Key Pension Facts 2026
Minimum Contribution
8% total (3% employer, 5% employee minimum)
Qualifying Earnings
£6,240 to £50,270 per year (2025/26)
Annual Allowance
£60,000 maximum tax-free (both contributions)
Tax Relief
20% to 45% depending on your tax rate
Who Can Use This Calculator?
UK Employees
Calculate your workplace pension contributions and see your real cost after tax relief
Employers & HR
Work out total employment costs including pension contributions
Salary Negotiators
Compare pension benefits when evaluating job offers
Financial Planners
Model pension scenarios alongside student loans and other deductions
Calculate Your Pension Contributions
How the Calculator Works
Enter Your Details
Input your salary, contribution rates, and whether you use salary sacrifice or employer matching.
Instant Calculation
Our calculator processes your data using 2025/26 UK tax rates and pension thresholds in under 1 second.
Detailed Breakdown
See your monthly and annual contributions, tax relief, NI savings, and real cost after all benefits.
Download & Share
Export a professional PDF report or share your results to help others plan their pension contributions.
Understanding UK Pension Contributions
Auto-Enrolment Workplace Pensions
Since 2018, UK employers must automatically enrol eligible employees into a workplace pension scheme. The minimum total contribution is 8% of qualifying earnings, with employers contributing at least 3% and employees at least 5%. Qualifying earnings for 2025/26 are between £6,240 and £50,270, meaning contributions are calculated only on earnings within this band.
If you earn £40,000, your qualifying earnings are £33,760 (£40,000 minus £6,240). An 8% total contribution equals £2,700.80 annually or £225.07 monthly. Many employers offer more generous schemes using your total salary instead of just qualifying earnings, resulting in higher pension contributions.
Tax Relief on Pension Contributions
Pension contributions receive tax relief at your highest income tax rate. Basic rate taxpayers (20%) get automatic relief, meaning a £100 contribution costs only £80. Higher rate (40%) and additional rate (45%) taxpayers can claim additional relief through their Self Assessment tax return. If you're a higher rate taxpayer contributing £5,000 annually, your real cost is just £3,000 after claiming full relief.
Salary Sacrifice Benefits
Salary sacrifice (or salary exchange) allows you to give up part of your gross salary in exchange for employer pension contributions. This happens before tax and National Insurance are deducted, saving you 12% NI on contributions (up to the upper earnings limit). For example, a £200 monthly contribution via salary sacrifice saves you £24 monthly in NI compared to regular contributions. However, from April 2029, NI relief will be capped at £2,000 per year. Check how this affects your take-home pay before committing.
Annual Allowance Limits
The pension annual allowance limits tax-free contributions to £60,000 per year (2025/26). This includes both your and your employer's contributions across all pension schemes. High earners with adjusted income over £260,000 face a tapered allowance, reducing by £1 for every £2 above this threshold, down to a minimum of £10,000. Exceeding your allowance triggers a tax charge on the excess amount.
💡 Maximise Free Money
If your employer offers contribution matching (e.g., matching up to 7%), always contribute enough to receive their maximum. This is essentially free money boosting your retirement savings. Use our calculator to find your optimal contribution rate.
Pension Contributions and Other Deductions
Pension contributions interact with other salary deductions. If you're repaying a student loan, salary sacrifice reduces your gross income, potentially lowering your monthly repayments. Similarly, pension contributions affect means-tested benefits like Universal Credit. Consider all deductions when planning your finances.
Real Pension Contribution Examples
Scenario 1: Standard Auto-Enrolment
Person: Sarah, retail manager
Salary: £28,000 annually
Contribution: 5% employee, 3% employer
Qualifying Earnings: £21,760
Employee Contribution: £1,088/year (£90.67/month)
Employer Contribution: £652.80/year
Tax Relief: £272/year (20%)
Real Cost: £816/year
Total Pension: £2,012.80/year
Sarah pays £816 but gets £2,012.80 into her pension - a 146% return before any investment growth.
Scenario 2: Salary Sacrifice
Person: James, IT consultant
Salary: £55,000 annually
Contribution: 8% employee (salary sacrifice), 5% employer
Qualifying Earnings: £50,270 (capped)
Employee Contribution: £4,021.60/year
Employer Contribution: £2,513.50/year
Tax Relief: £1,608.64 (40% higher rate)
NI Savings: £482.59/year
Real Cost: £1,930.37/year
Total Pension: £6,535.10/year
James saves an extra £482.59 in NI by using salary sacrifice compared to regular contributions.
Scenario 3: Employer Matching
Person: Priya, marketing manager
Salary: £42,000 annually
Contribution: 7% employee, 7% employer (matched)
Qualifying Earnings: £35,760
Employee Contribution: £2,503.20/year
Employer Match: £2,503.20/year
Tax Relief: £625.80 (20%)
Real Cost: £1,877.40/year
Total Pension: £5,632.20/year
By contributing 7% to get the employer match, Priya doubles her contribution at minimal extra cost. Compare pension benefits when reviewing job offers.
Scenario 4: Total Salary Basis
Person: David, senior analyst
Salary: £65,000 annually
Contribution: 6% employee, 6% employer (total salary)
Pensionable Earnings: £65,000 (full salary)
Employee Contribution: £3,900/year
Employer Contribution: £3,900/year
Tax Relief: £1,560 (40%)
Real Cost: £2,340/year
Total Pension: £9,360/year
David's employer uses total salary instead of qualifying earnings, resulting in £1,656.80 more in annual contributions compared to qualifying earnings basis.
Frequently Asked Questions
What is the minimum pension contribution in the UK?
The minimum workplace pension contribution is 8% of qualifying earnings (£6,240 to £50,270). Your employer must contribute at least 3%, and you contribute at least 5%. Many employers offer higher rates as a benefit.
How much tax relief do I get on pension contributions?
Basic rate taxpayers get 20% tax relief automatically. Higher rate (40%) and additional rate (45%) taxpayers can claim extra relief via Self Assessment. A £100 contribution costs you only £80 after basic rate relief, or £60 for higher rate taxpayers after claiming additional relief.
What is salary sacrifice for pensions?
Salary sacrifice exchanges part of your gross salary for employer pension contributions before tax and National Insurance. This saves 12% NI for most employees, plus income tax. From April 2029, NI relief will be capped at £2,000 per year. Ask your employer if they offer this scheme.
What are qualifying earnings for pensions?
Qualifying earnings are earnings between £6,240 and £50,270 per year (2025/26). Auto-enrolment pension contributions are calculated on this band only. Someone earning £40,000 has qualifying earnings of £33,760 (£40,000 - £6,240). Earnings outside this band don't count towards pension contributions.
What is the pension annual allowance for 2026?
The standard annual allowance is £60,000 for 2025/26. This includes both your and your employer's contributions across all pension schemes. High earners (adjusted income over £260,000) face a tapered allowance down to £10,000. Exceeding your allowance triggers a tax charge.
Can I contribute more than the minimum to my pension?
Yes. Many employers offer contribution matching up to a limit (often 5-10%). Contributing more increases your pension pot and provides greater tax relief. It's one of the most tax-efficient ways to save. Use our salary negotiation calculator when discussing pension benefits with your employer.
Do employer contributions count towards annual allowance?
Yes. Both employee and employer contributions count towards your £60,000 annual allowance. Exceeding this triggers a tax charge on the excess, unless you have unused allowance from previous years to carry forward. Monitor your total contributions if you have multiple pension schemes.
How does employer pension matching work?
Employer matching means your employer matches your contribution up to a maximum percentage. If they offer 7% matching and you contribute 7%, they contribute 7% too (14% total). Contributing 10% means they still only contribute their 7% maximum. Always contribute enough to receive the full employer match.
Data Sources and Accuracy
This calculator uses official UK government figures for 2025/26:
- Qualifying Earnings Thresholds: The Pensions Regulator
- Annual Allowance: HMRC Pension Schemes Rates
- Income Tax Rates: GOV.UK Income Tax Rates
- National Insurance Rates: GOV.UK National Insurance
Calculation Methodology: This calculator applies standard UK pension contribution rules. Employee contributions are calculated based on your chosen basis (qualifying earnings or total salary). Tax relief is applied at your marginal rate. Salary sacrifice calculations account for National Insurance savings at 12% between the primary threshold and upper earnings limit.
Last Updated: January 2026 with 2025/26 tax year rates
Disclaimer: This calculator provides estimates for planning purposes. Actual pension contributions may vary based on your specific pension scheme rules, employer policies, and personal circumstances. For personalised pension advice, consult a regulated financial adviser registered with the Financial Conduct Authority. This tool does not constitute financial advice.
Your Privacy and Data Protection
Your privacy matters. This calculator operates entirely in your browser using client-side calculations. We do not store, transmit, or collect any of your salary information, contribution details, or calculation results.
How It Works: All processing happens locally on your device using JavaScript. When you click "Calculate," your data is processed in your browser and displayed instantly. No data is sent to our servers or third parties.
The only data we collect is anonymous usage statistics (page views, button clicks) through our website analytics to help us improve the tool. These statistics cannot identify individual users or their calculation inputs. You can use this calculator with complete confidence that your pension planning details remain private and secure.