Workplace Pension & Auto-Enrolment Calculator UK 2025/26
Since 2012, employers must automatically enrol eligible workers into a workplace pension. Contributions must total at least 8% of qualifying earnings — at least 3% from the employer. This calculator works out your exact contributions, your employer’s contribution, the government top-up, and projects your pension pot at retirement.
Auto-enrolment minimums 2025/26: 8% total (3% employer min, 5% employee min) on qualifying earnings (£6,240–£50,270). Government adds tax relief at basic rate on your contributions. Projection uses compound growth and is illustrative only — actual returns vary and charges apply. Always take advice from a pension specialist for retirement planning.
How Auto-Enrolment Works
Auto-enrolment requires employers to enrol eligible workers automatically into a qualifying workplace pension. Workers are eligible if they are: aged 22 to State Pension age; earning above £10,000/year; and working in the UK. Younger workers and those earning between £6,240 and £10,000 can ask to be enrolled but the employer does not have to contribute.
The minimum contribution rates of 8% (3% employer, 5% employee) are calculated on qualifying earnings — the band between £6,240 and £50,270. This means a worker on £30,000 has qualifying earnings of £23,760 (£30,000 − £6,240), and minimum contributions are 8% of £23,760 = £1,901/year total.
Government Tax Relief — The Hidden Benefit
Pension contributions attract income tax relief. For basic rate taxpayers, for every £80 you contribute, the government adds £20, making the total £100 in the pension. This relief is claimed automatically by the pension provider under the “relief at source” method (most workplace pensions). Higher rate and additional rate taxpayers can claim additional relief through self-assessment.
Combined with employer contributions, the effective cost of saving into a pension is dramatically less than the face value suggests. For a basic rate taxpayer whose employer pays 3%:
- Employee contributes £40/month (after 20% tax relief = £50 going into pension)
- Employer adds £30/month
- Total into pension: £80/month for £40 out of pocket — effectively doubling your contribution immediately
The True Cost of Opting Out
Many workers opt out of pension auto-enrolment, particularly younger workers on lower incomes who feel they cannot afford the contributions. The problem is that opting out means forfeiting the employer’s contributions and tax relief — which together are effectively free money. Over a 30-year career, opting out of a pension paying just 3% employer contributions can result in a pension pot tens of thousands of pounds smaller at retirement.
Frequently Asked Questions
No. Employers must auto-enrol eligible workers — they have no discretion about who to enrol. It is illegal for an employer to encourage workers to opt out, dismiss someone for wanting to stay enrolled, or select workers for redundancy because they are pension members. If your employer is not enrolling you and you believe you are eligible, contact The Pensions Regulator at thepensionsregulator.gov.uk or call 0345 600 7060.
Your pension pot stays in the scheme and belongs to you. You can: leave it where it is and let it grow; transfer it to your new employer’s scheme; or transfer it to a personal pension. Combining old pension pots can make administration simpler and may reduce charges. The Pensions Tracing Service (0800 731 0193) can help find lost pensions from previous jobs.