Auto Enrolment Calculator

Auto Enrolment is a UK government scheme that requires employers to automatically enrol eligible employees into a workplace pension. This calculator helps you determine your pension contributions and eligibility.

What is Auto Enrolment?

Auto Enrolment is a UK government scheme introduced in 2012 to encourage workers to save for their retirement. It requires employers to automatically enrol eligible employees into a workplace pension scheme, with contributions made through payroll deductions.

The scheme aims to:

Increase pension savings among workers
Reduce the pension gap
Encourage employers to offer pension schemes

Employees can choose to opt out of the scheme if they prefer, but they must provide a valid reason for doing so.

How Auto Enrolment Works

Eligibility

Employees are eligible for Auto Enrolment if they:

Are aged 22 or over
Earn at least £10,000 per year
Are employed by a company with a payroll

Employer Contributions

Employers must contribute at least 3% of an employee's salary to a pension scheme. The contribution rate increases to 5% for higher earners.

Employee Contributions

Employees can choose to contribute between 0% and 5% of their salary, with the government topping up their contributions up to 5%.

Note: The government's top-up is only available if the employee contributes at least 1% of their salary.

Pension Schemes

Employers must provide a qualifying workplace pension scheme that meets certain requirements, such as offering a defined contribution pension.

Calculating Your Contributions

The amount you contribute to your pension depends on your salary and the contribution rates set by your employer. The calculator on the right helps you estimate your contributions.

Key Factors

Your annual salary
Employer contribution rate
Your contribution rate
Government top-up (if applicable)

Formula

Total Contribution = (Salary × Employer Rate) + (Salary × Your Rate) + (Salary × Government Top-up)

Example Calculation

If you earn £30,000 per year, your employer contributes 5%, you contribute 3%, and the government tops up your contribution:

Employer contribution: £30,000 × 5% = £1,500
Your contribution: £30,000 × 3% = £900
Government top-up: £30,000 × 2% = £600
Total contribution: £1,500 + £900 + £600 = £3,000

Example Calculation

Let's say you earn £40,000 per year, your employer contributes 5%, you contribute 2%, and the government tops up your contribution:

Employer contribution: £40,000 × 5% = £2,000
Your contribution: £40,000 × 2% = £800
Government top-up: £40,000 × 2% = £800
Total contribution: £2,000 + £800 + £800 = £3,600

This means you'll be contributing £3,600 per year to your pension, which is £300 per month.

Frequently Asked Questions

Who is eligible for Auto Enrolment?

Employees aged 22 or over who earn at least £10,000 per year and are employed by a company with a payroll are eligible for Auto Enrolment.

How much do I need to contribute?

You can choose to contribute between 0% and 5% of your salary. The government will top up your contributions up to 5% if you contribute at least 1%.

What happens if I opt out?

You must provide a valid reason for opting out, such as already having a pension arrangement or being in a defined benefit scheme. If you opt out without a valid reason, you may be penalised.

Can I change my contribution rate?

Yes, you can change your contribution rate at any time. The changes will take effect from your next payroll.

What if my employer doesn't offer a pension scheme?

If your employer doesn't offer a qualifying pension scheme, they must provide you with information about local pension schemes and the Pension Tracing Service.