Pension contribution calculations are based on a few key settings and values. Click each option below to learn more.
▼ Pensionable earnings This is the total value of an employee's payments used to calculate their pension contributions.
For example, an employee's gross pay includes a £900 pensionable salary payment, and a £100 non-pensionable bonus payment. The total gross pay is £1000, but the pensionable earnings are £900.
To check an employee's pensionable earnings, choose a dropdown below.
▼ Pensionable earnings for a specific period - Select Pay Runs and choose the relevant period from the list.
- Under Pension submissions, select View Submission Details.
- Locate the Pensionable Earnings for the relevant employee.
▼ Year-to-date pensionable earnings - Go to Pensions.
- Under Reports at the bottom of the page, select View pension contributions to date.
- Select the correct Tax year to report on.
- Locate the Pensionable Pay for the relevant employee.
▼ Earnings basis The earnings basis sets how much of an employee's gross pay gets is used to calculate pension contributions. This gets is set in the pension and payment settings. If they don't match, the pension calculations will be wrong.
Check the pension settings:
- Go to Pensions and select Edit Pension.
- On the relevant group, select View/Edit.
- Select Next to view the earnings basis selected.
Check the payment settings:
- Go to Settings and select Payments and deductions.
- From your list of payments, select Edit on the relevant payment.
- At the bottom of the window, you'll see the checkboxes with the selected earnings basis.
See the dropdown below for definitions on each basis.
▼ Qualifying earnings or Banded earnings Qualifying earnings use thresholds to determine how much of an employee's pay is pensionable.
- Earnings below the annual lower threshold of £6,240 aren't included in the employee's pension contribution
- Earnings above the annual upper threshold of £50,270 aren't included in the employee's pension calculation
Let's break down those annual thresholds into values for each pay frequency.
| Pay Frequency | Lower threshold | Upper threshold |
| Monthly | £520 | £4189 |
| Four weekly | £480 | £3867 |
| Fortnightly | £240 | £1934 |
| Weekly | £120 | £967 |