What is Qualifying Earnings? UK Definition 2026/27
Quick Answer
Earnings band used for auto-enrolment pension calculations (£6,240-£50,270).
Definition of Qualifying Earnings
Qualifying earnings is the earnings band used to calculate minimum auto-enrolment pension contributions. For 2026/27, its earnings between £6,240 and £50,270. Total minimum contribution is 8% of qualifying earnings (3% employer, 5% employee). Employers can choose different calculation methods including total earnings.
Qualifying Earnings — Key Facts for 2026/27
| Lower limit | £6,240 |
| Upper limit | £50,270 |
| Total minimum | 8% |
| Employer minimum | 3% |
How Qualifying Earnings Works — Example
- 1Annual salary: £30,000
- 2Qualifying earnings: £30,000 - £6,240 = £23,760
- 3Employee contribution (5%): £1,188
- 4Employer contribution (3%): £712.80
- 5Total pension: £1,900.80/year
How Qualifying Earnings Affects Your Tax
Qualifying earnings is the minimum legal basis for auto-enrolment pensions, but many employers use total earnings (more generous). Check your scheme details - you may be contributing more than the minimum.
Official HMRC Guidance on Qualifying Earnings
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
GOV.UK: Workplace pension contributionsFrequently Asked Questions about Qualifying Earnings
Related Tax Terms
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.