Pension Contributions

We handle both employee and employer pension contributions in line with the UK’s auto-enrolment legislation. From assessing who needs to be enrolled to calculating contributions each pay period, we manage the entire process. Under current law, employers must auto-enrol all eligible workers (for example, those over 22 earning above £10,000 per year) into a pension scheme and contribute on their behalf. We make sure no eligible employee is overlooked – our system flags when someone becomes eligible (due to age or earnings), and we execute the enrolment promptly within the allowed timeframe. We’ll also handle the required communications to employees about their pension enrollment and rights, ensuring you remain compliant with The Pensions Regulator’s guidelines.

Once employees are enrolled, we meticulously calculate the pension contributions each pay run. By law, a minimum total contribution of 8% of qualifying earnings must be paid into the pension, with at least 3% contributed by the employer. We track the qualifying earnings band (for 2025/26, earnings between £6,240 and £50,270 are counted) and apply the correct percentage to each employee’s pay. For example, if an employee earns £2,000 in a month and is in the auto-enrolment scheme, we’d calculate the contributions on the portion of that pay within the qualifying range and allocate 5% from the employee and 3% from the employer (unless higher rates have been set by your scheme). Our team ensures that the minimum requirements are always met or exceeded – and if you as an employer choose to contribute more generously, we handle that increased contribution seamlessly as well. We also make sure to deduct the employee’s portion of the contribution from their pay (before tax, in the case of net pay arrangements or via salary sacrifice if implemented) correctly each time.