Answers · UK 2025/26
How much are minimum auto-enrolment pension contributions on a £40,000 salary?
On a £40,000 salary in 2026/27, auto-enrolment minimum pension contributions are calculated on qualifying earnings of £33,760 (between £6,240 and £50,270): 5% employee (£1,688) and 3% employer (£1,012.80), totalling £2,700.80 a year.
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Workplace pension auto-enrolment minimum contributions in 2026/27 are calculated on "qualifying earnings" -- the band of salary between a lower limit of £6,240 and an upper limit of £50,270 -- rather than on your whole salary. On a £40,000 annual salary, qualifying earnings are £40,000 minus £6,240, which is £33,760. The statutory minimum total contribution is 8% of qualifying earnings, split as at least 3% from the employer and the remainder, at least 5%, from the employee (which typically includes a small element of basic rate tax relief added automatically). On £33,760 of qualifying earnings, 5% employee contribution is £1,688 a year, and 3% employer contribution is £1,012.80 a year, giving a combined total of £2,700.80 paid into the pension annually. These are only the statutory minimums -- many employers offer more generous contribution rates, sometimes matching or exceeding employee contributions well above 3%, and some schemes calculate contributions on total salary rather than just qualifying earnings, which would result in higher contributions than shown here. Employee pension contributions through auto-enrolment are usually made via relief-at-source or net pay arrangements, and increasing your own contribution rate above the minimum, especially if your employer matches it, is one of the most effective ways to boost retirement savings. Use the Auto-Enrolment calculator to model different contribution rates on your salary.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.