How much are your contributions?

Auto-enrolment legislation requires you and your employer to pay a minimum level of contributions to your pension, in order to build up a meaningful level of benefits when you retire.

Standard contribution rates

Under auto-enrolment legislation, the standard minimum contribution rate is 8% of your “Qualifying Earnings”. By default, this is split between you and your employer as follows:

  • 5% is payable by you
  • 3% is payable by your employer

Qualifying Earnings currently includes all income:

  • between £120 and £967 if you are paid weekly
  • between £520 and £4,189 if you are paid monthly


Alternative contribution rates

Your employer may choose to use a different definition of pensionable income, with different minimum contribution rates. They may also choose to pay more of the total contributions themselves, reducing the amount that you contribute personally. In either case, you will be given the details of any alternative arrangements that may apply to your workplace scheme.


Can you pay additional contributions?

You may choose to pay larger personal contributions, subject to an overall maximum of 100% of your earned income, or the Annual Allowance, if lower (currently £60,000 pa). The Annual Allowance includes both personal and employer contributions and also includes contributions to any other pensions that you pay into in the same tax year.

Note – the 100% of earned income restriction does not apply to employer‘s contributions. These are however still subject to the Annual Allowance.

Remember that the more money that is paid into the plan, then the greater the benefits will be at retirement. You may wish to take advice with regard to appropriate contribution rates, so that the scheme may ultimately provide you with an income in retirement that will meet your expectations.

If you wish to pay higher contributions to this scheme this must be arranged via payroll – please contact your employer in the first instance.

Please note that if you choose to pay more than the minimum contributions yourself, your employer is not required to increase their contributions.