If the qualifying earnings basis is being used, the minimum contribution is 8% with at least 3% from the employer on qualifying earnings falling between upper and lower earnings limits of £6,240 and £50,270 a year. These payments are known as ‘contributions’ and are set by the government each year.
Minimum pension contributions have risen in stages starting from 6 April 2018. From 6 April 2019 minimum pension contributions have increased to 8% of employees’ qualifying earnings (3% employer, 4% employee and 1% tax relief; or 3% employee and 5% employer if salary sacrifice is offered).
For more information see The Pensions Regulator contribution levels guidance.