The legal minimum auto-enrolment contribution is 8% of your qualifying earnings[1]. Your employer must pay at least 3% and you pay the rest, usually 5%, of which 1% is tax relief the government adds. The framework comes from section 20 of the Pensions Act 2008[2].
How is the 8% split between me and my employer?
| Who pays | Minimum |
|---|---|
| Employer | 3% of qualifying earnings |
| You (the worker) | 5% of qualifying earnings, including 1% tax relief |
| Total | 8% of qualifying earnings |
What counts as 'qualifying earnings'?
Qualifying earnings are the band of pay between £6,240 and £50,270 for 2026/27. Contributions are charged only on the slice inside that band, not on your whole salary. You are enrolled automatically once you earn over £10,000 a year and are aged between 22 and State Pension age; below those points enrolment is not automatic but you can still ask to join. Our employer auto-enrolment guide covers who must be enrolled.
Why is the contribution not 8% of my whole salary?
Because the band excludes the first £6,240 and anything above £50,270. On a £30,000 salary, the 8% is charged on £23,760, so the real cost is below a flat 8% of gross. Some employers use a more generous basis that counts all pay, or pay above the 3% minimum; your scheme documents say which. Paying extra yourself, sometimes through salary sacrifice, can attract further tax and National Insurance relief.
Primary sources
- 1.Workplace pensions: what you, your employer and the government pay — gov.uk — The 8% total split and the qualifying earnings band
- 2.Pensions Act 2008, section 20 — legislation.gov.uk — Defines qualifying earnings as a band of pay
- 3.The Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 — legislation.gov.uk — SI 2010/772 — the auto-enrolment contribution mechanics
- 4.Calculating contributions — The Pensions Regulator — How minimum contributions are worked out on qualifying earnings
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