Login .a{fill:none;stroke:currentColor;stroke-linecap:round;stroke-linejoin:round;stroke-width:1.5px} Home Employers Learn about workplace pensions Qualifying earnings Qualifying earnings Qualifying earnings are the minimum basis for calculating auto enrolment contributions for your employees. They’re all the earnings between a lower and upper limit that’s set by the government and reviewed each year. Although there are other ways to work out contributions, we use the minimum level as our standard contribution model 101. Qualifying earnings at a glance Qualifying earnings are all an employee’s earnings between a lower and upper limit set by the government and reviewed each year. For the 2021-2022 tax year: the lower limit is £6,240 the upper limit is £50,270 the maximum qualifying earnings is £44,030 (£50,270-£6,240) Qualifying earnings thresholds Pay periods Lower level Upper level Weekly £120 £967 Fortnightly £240 £1,934 Four-weekly £480 £3,867 Monthly £520 £4,189 An example 2021/2022 earnings: £20,000 salary + £5,000 bonus Qualifying earnings: £25,000-£6,240 = £18,760. What’s included Qualifying earnings include: • salary • wages • commission • bonuses • overtime • statutory sick pay • statutory parental leave pay (maternity, paternity and adoption pay). Minimum auto enrolment contributions The minimum auto enrolment contribution to an employee’s pension savings, based on qualifying earnings, is 8%. The minimum employer contribution is 3%, so the minimum employee contribution is 5%. Employee Employer Total 5% 3% 8% This minimum contribution level is our basic contribution model (Scheme tier) 101. There are four other contribution models (Scheme tiers) with different ways to work out contributions and higher contribution levels. It’s also possible to design a bespoke contribution structure for your Scheme. Find out more about our contribution models. Browse Members Employers Payroll bureaus Financial advisers Support Help and support Resources Contact us Events Read News and insights Press Serving our members Legal information Learn About us Our mission Our investment strategy Careers Connect NOW: Pensions is registered in England and Wales as NOW Pensions Limited (No. 07766398), 6 Bevis Marks, London, EC3A 7BA. We are regulated by The Pensions Regulator and identifiable under the Pension Schemes Registry (PSR) under registration number 12005124 and HMRC reference number 00776316RJ. By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Cookies Settings Accept All Cookies