The annual allowance is the total amount you and your workplace can pay into your pension savings and still get tax relief. For most people, the current annual allowance is £60,000 for the tax year 2024-2025. If you go over this you’ll have to pay tax on the amount over the allowance.
It applies to all the pensions you’re actively saving into, including NOW: Pensions and any personal pensions you have. It doesn’t apply to your State Pension.
You can pay up to the whole of your salary – 100% – into your pension savings and still get tax relief, as long as all the money you and your workplace have paid in is below the annual allowance.
Find out more about the money purchase annual allowance for pension contributions.