Employer Pension Cost Calculator 2026/27

Calculate auto-enrolment pension contributions using 2026/27 qualifying earnings (£6,240–£50,270).

Enter Details

% of qualifying earnings
% of qualifying earnings
Under salary sacrifice the employer pays the employee's contribution directly, saving employer NI at 15% on that amount. The NI saving is shown below.
2026/27 qualifying earnings: £6,240 – £50,270 • Minimum total: 8% (3% employer)
Employer pension cost per year
£863
3% of £28,760 qualifying earnings
Qualifying earnings
£28,760
Employer contribution
£863
Employee contribution
£1,438
Total pension (annual)
£2,301
Employer pension % salary
2.5%
Qualifying earnings for 2026/27: £6,240 to £50,270. Pension contributions are on earnings within this band, not total salary.

Just costing a hire? Check if it could cost less — free relief check 

Calculate full employer cost including NI

Employer NI Calculator →

Frequently Asked Questions

What are qualifying earnings for auto-enrolment?
Qualifying earnings are the portion of pay used to calculate pension contributions. For 2026/27, this is earnings between £6,240 and £50,270 per year. Contributions are applied to earnings within this range only — not total salary — which is why the effective pension percentage appears lower than the stated rate for higher earners.
What are the minimum auto-enrolment contribution rates?
The legal minimum is 8% of qualifying earnings in total — at least 3% from the employer and the remainder from the employee. Most employers pay exactly 3% and employees contribute the remaining 5%. Employers may choose to pay more, which reduces the employee's required contribution.
How does salary sacrifice affect pension costs?
Under salary sacrifice, employees agree to reduce their gross salary and the employer pays that amount directly as pension contribution. This eliminates the employee's income tax and National Insurance on the sacrificed amount, and saves the employer National Insurance at 15% on the sacrificed sum. It is tax-efficient for both parties.
How it works

Three steps to estimate employer pension cost

1. Enter salary
Qualifying earnings are automatically capped to the statutory band.
2. Set contribution rates
Adjust employer and employee rates to reflect your pension policy.
3. Review annual totals
Read employer cost, total pension and salary-sacrifice NI saving.

Written and reviewed by James Whitfield and the editorial team.

Every figure is checked against current HMRC and GOV.UK guidance and reviewed for the 2026/27 tax year. We explain the numbers in plain English with worked examples. Editorial standards · About us