Contributions are the money that gets invested into your pension pot to save for retirement.
How much do I have to pay?
The government has set minimum levels of contributions that must be paid to the workplace pension scheme by you and/or your employer. Your employer will tell you how much you will have to pay. The pension contributions you pay will normally be a fixed sum or percentage of your earnings.
|Dates||Employer minimum contribution||Employee contribution||Tax relief on employee contribution||Total minimum contribution|
|Before 5 April 2018||1%||0.8%||0.2%||2%|
|6 April 2018 to 5 April 2019||2%||2.4%||0.6%||5%|
|6 April 2019 onwards||3%||4%||1%||8%|
The minimum contributions above are based on qualifying earnings which are the band of earnings between £6,240 and £50,000 for the tax year 2020/2021. Your employer is legally obliged to make minimum contributions but can increase it to more if they want.