What Are Qualifying Earnings? UK Pension Explained

Qualifying earnings is the slice of your pay between £6,240 and £50,270 (the auto-enrolment thresholds for 2026/27). Your workplace pension contribution is calculated as a percentage of this band, not your full salary.

On a £30,000 salary, your qualifying earnings are £23,760 (= £30,000 - £6,240). The legal-minimum 8% total contribution under auto-enrolment is therefore £1,901/year, not the £2,400 a naive 8% of £30,000 would suggest.

Some employers contribute on full salary, some on banded earnings (the same £6,240-£50,270 range, just expressed as the band itself), and some on qualifying earnings as defined here. Check which one your scheme uses.

For high earners, qualifying earnings is capped at £50,270, so a £100,000 earner with a 5% qualifying-earnings contribution puts £2,201.50/year in. The same 5% on full salary would put in £5,000. The difference compounds significantly over a career.