Qualifying earnings

These are the earnings your pension contributions are usually based on if you are saving into a pension with us.

They include your salary, wages, overtime, bonuses and commission, statutory sick pay, and any statutory pay received during paternity, maternity, adoption or any other kind of family leave.
Some employers use a different earnings basis though – usually either pensionable earnings or total earnings.

  • However much of your qualifying earnings come between £6,032 and £46,350, that’s what the contributions you and your employer make will be calculated from. (Those are the figures for the tax year 2018/19 – they’re reviewed every year by the government.)
  • Say you earn £25,000.
    £25,000 minus £6,032 leaves £18,968.
    So your contributions will then be calculated from £18,968 – either at the minimum percentages set by the government, or your employer can set higher percentages if they want to.