This depends on what definition of pensionable earnings your workplace uses – whether it’s qualifying earnings, basic earnings or total earnings. Most workplaces use qualifying earnings when calculating and paying pension contributions.
Qualifying earnings are all your earnings between a lower and upper limit. In 2025 to 2026 the lower limit is £6,240 and the upper limit is £50,270. The government will review these limits every year. Qualifying earnings include salary, wages, commission, bonuses, overtime, statutory sick pay and statutory parental leave pay (maternity, paternity and adoption pay).
Basic earnings include your basic pay and any statutory sick pay, statutory maternity pay, statutory paternity pay and statutory adoption pay. Workplaces can exclude things like bonuses, overtime and commission.
Total earnings are all your earnings including wages, commission, overtime, bonuses, performance-related pay and any other earnings.