What is the minimum employer pension contribution?

The minimum employer contribution is 3% of qualifying earnings (earnings between £6,240 and £50,270 per year).

Who needs to be auto-enrolled?

All workers aged 22 to State Pension age, earning above £10,000 per year, must be automatically enrolled in a workplace pension scheme.

Yes, employees can opt out within one month. But you must re-enrol them every 3 years if they remain eligible.

Pre-filled with typical Retail figures: 12 employees, £25,000 average salary. Adjust the sliders for your actual numbers.

All employers must contribute at least 3% of qualifying earnings (between £6,240 and £50,270) to employee pensions. Calculate your total annual cost.

Number of Eligible Employees

112500

Average Annual Salary

£10k£25,000£100k

Employer Contribution (%)

3%3%10%

£6,754

3% employer contribution on qualifying earnings

Per employee cost£563/yr

Qualifying earnings band£18,760

Effective % of gross salary2.3%

£563 /month

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What is the minimum employer pension contribution?: The minimum employer contribution is 3% of qualifying earnings (earnings between £6,240 and £50,270 per year).
Who needs to be auto-enrolled?: All workers aged 22 to State Pension age, earning above £10,000 per year, must be automatically enrolled in a workplace pension scheme.
Can employees opt out?: Yes, employees can opt out within one month. But you must re-enrol them every 3 years if they remain eligible.