Glossary · UK
What is Qualifying Earnings?
The band of pay used to calculate minimum auto-enrolment pension contributions.
Full Definition
Qualifying earnings are the slice of an employee's pay, between a lower and upper earnings threshold reviewed each tax year, on which minimum automatic enrolment pension contributions are calculated. Pay below the lower threshold or above the upper threshold falls outside the qualifying earnings band. Total minimum contributions are currently 8% of qualifying earnings, made up of at least 3% from the employer with the balance from the employee (including any basic-rate tax relief).
Related Calculators
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.