Your employer contributes to your pension too - here’s how it works.
Understanding where your employer’s pension contribution comes from can help you make smart choices about your own contributions. It’s one of the simplest ways to boost your pension pot, without doing much at all.
What are employer contributions?
Your employer’s contribution is usually a percentage of either your basic salary or qualifying earnings. The exact amount depends on the structure of your company’s pension scheme.
Some employers stick to the minimum. Others go further by matching contributions, which means they’ll pay in more if you do (up to a certain limit).
How your choices might affect theirs
If your employer offers matching, every extra bit you put in could trigger a boost from them too. Win-win.
But it works both ways - if you lower your contributions, their contributions might drop as well.
To understand how your specific scheme works, check your employment contract or speak to HR or Payroll. They’ll be able to break it down clearly.
Quick takeaways
- Employer contributions are based on your workplace pension scheme
- They’re usually a percentage of your salary or earnings
- Some schemes offer matching (which can be a great incentive to save more)
- Changes to your own contributions may affect what your employer adds
Small adjustments can make a big difference over time. Want to explore your options? Head to the Contribution settings section in the app.
