How much will I have to contribute?

The actual contributions you and your employer will make will be based on the scheme rules and design. However, there are minimum contribution levels that have been set for both Employer and Employee that will increase over time.

If you’re automatically enrolled as an eligible jobholder or you’re a non-eligible jobholder and opt in to the pension scheme, a minimum contribution level of 5% must be paid into your pension. The employer’s minimum pension contribution is currently 2.00%.

The table below assumes pension contributions are payable on your ‘qualifying earnings’. Further details about qualifying earnings can be found here.

Minimum employer pension contributionMinimum total pension contributionExpected employee pension contribution
Currently2.00%5.00%3.00%
From April 20193.00%8.00%5.00%

You will receive income tax relief on your contributions, so every £1 you pay into your pension account in gross terms will only cost you £0.80 from your take home pay. Higher rate tax payers will also be able to reclaim additional tax relief.

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