UK PAYROLL
Your pension deduction, explained.
See exactly what is going from your salary into your workplace pension, what your employer is adding on top, and how tax relief actually works.
Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or HMRC.
Read more on UK pensions
Auto-enrolment explained
Why you were enrolled and how to opt out (if you want to).
Salary sacrifice for pension
Save NI by sacrificing salary into your pension.
Net pay vs relief at source
Two ways tax relief gets added. They differ for low earners.
NHS Pension
How the NHS scheme appears on your payslip.
Teachers Pension
Tiered contributions explained.
Why has my pension changed
Common reasons for a sudden change in deduction.
Common questions
How much should I be contributing?
The UK auto-enrolment minimum is 5 percent from the employee plus 3 percent from the employer, applied to qualifying earnings between £6,240 and £50,270 in 2026/27. Many employers offer more generous schemes; check your contract.
Why does my payslip show a different pension number than my contract says?
Auto-enrolment usually applies to qualifying earnings only, not your full salary. If your contract says 5 percent of full salary but the deduction is calculated on qualifying earnings, the cash amount will be different. Confirm the basis in your scheme rules.
Can I increase my pension contribution?
Yes. Most employers let you raise your contribution at any time, often via a payroll portal. Higher contributions get more tax relief and reduce your immediate take-home; salary sacrifice schemes also save National Insurance.
What is salary sacrifice for pension?
Salary sacrifice is an arrangement where you give up part of your gross salary in exchange for a higher employer pension contribution. You save income tax and NI on the sacrificed amount; your net pay drops by less than the contribution increases.
Run the Pension Calculator
Free. Private. No signup.
Open the toolPayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.