Pension costs

Auto enrolment payroll costs for UK employers (2025/26)

Auto enrolment adds a mandatory pension contribution on top of every eligible employee's salary. For 2025/26, the minimum employer contribution is 3% of qualifying earnings — the slice of salary between £6,240 and £50,270. That means for a £30,000 salary the auto enrolment cost to the employer is approximately £714 per year (3% of £30,000 minus £6,240). For a £50,000 salary it is approximately £1,309 per year. Use the pension cost calculator to model any salary, or the full employer calculator to combine pension with employer NI and overhead costs.

UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2025/26 tax year.

Sample total cost

£37,463

£3,122 per month on £30,000 salary

Employer NI

£3,750

15% above £5,000 secondary threshold (2025/26)

Pension + overheads

£3,713

Baseline employer pension plus configured overheads

Key assumptions — UK 2025/26
Employer NI: 15% on earnings above the £5,000 secondary threshold
Employer pension: minimum 3% on qualifying earnings £6,240–£50,270
Employment Allowance: up to £10,500 off the NI bill for eligible employers
Worked examples: £30k salary → £34,464/yr · £35k → £40,363/yr · £50k → £58,063/yr

What this page helps you check

Use the live tools

Open auto-enrolment pension cost calculator Cost of employing by salary Employer NI by salary Auto-enrolment pension calculator

UK assumptions used

Employer NI

15% above £5,000 secondary threshold for 2025/26.

Auto-enrolment pension

Minimum employer contribution 3% on qualifying earnings.

Employment Allowance

Up to £10,500 relief in 2025/26 for eligible employers.

Official UK references

HMRC rates and thresholds Employment Allowance Pensions Regulator guidance Our methodology Our source list

Frequently asked questions

What are qualifying earnings for auto-enrolment in 2025/26?
For 2025/26, qualifying earnings run from £6,240 to £50,270. The employer's minimum 3% contribution is calculated on the portion of salary that falls within that band, not on the full gross salary.
How much does auto enrolment cost the employer per month?
For a £30,000 salary, auto enrolment pension costs the employer around £59 per month (3% of £23,760 qualifying earnings, divided by 12). For a £40,000 salary it is around £84 per month. Use the pension cost calculator for any specific salary.
Which employees must be auto-enrolled?
Workers aged between 22 and State Pension Age who earn more than £10,000 per year in a single job must be automatically enrolled. Workers aged 16–21 or over State Pension Age, or those earning below £10,000, have the right to opt in but are not automatically enrolled.
Can employees opt out of auto-enrolment?
Yes. Employees can opt out within one month of being enrolled, and if they do the employer stops contributions and refunds theirs. Employers must re-enrol eligible employees every three years even if they previously opted out.
Does auto enrolment cost change if we offer more than 3%?
Yes. If you offer a higher employer contribution — common at 5% or 10% — model it using the full employer calculator. The statutory minimum is 3% of qualifying earnings, but many employers pay more to attract and retain staff.
Where do I calculate full employer cost including NI and pension?
Use the full employer calculator to combine salary, employer NI (15% above £5,000 for 2025/26) and pension contributions in one result. You can also add per-employee overhead costs.

UK coverage only. Last reviewed: 05 April 2026. Estimates use 2025/26 assumptions and are for planning, not legal or tax advice.