Employer pension contributions

The scheme sets the payable amount

Employer pension contributions are the employer-funded amounts paid into a workplace pension. The scheme rules or binding agreement should say which staff and earnings are covered, the contribution basis, the rate promised and when payment reaches the provider.

Statutory minimums are a floor, not always the amount due. A scheme can promise more, use a different pensionable-pay definition or place the employer under an additional contractual obligation. The Pensions Regulator's scheme guidance explains how a scheme demonstrates that it meets the minimum requirements.

Join the contribution to the payroll record

For each pay period, identify pensionable earnings under the scheme, calculate the employer amount and any worker deduction, then compare the payroll output with the provider schedule. Use the current statutory rates and thresholds where they apply. Do not preserve one tax year's figures as an evergreen payroll rule.

The GOV.UK contributions guide explains that the amount and earnings basis depend on the scheme. Salary sacrifice needs its own contractual and payroll treatment; it does not remove the employer's pension duties.

Reconcile money sent, not only money calculated

A correct payslip deduction is only half the job. Check that the provider received the employer and worker contributions for the right people and period. Investigate rejected files, leaver adjustments and late payments promptly.

The regulator lists contribution monitoring as an ongoing employer duty. Keep the approved payroll inputs, calculation, provider submission, payment confirmation and correction together. That record shows both what was due and what actually reached the scheme.