Your pension contributions depend on how your employer calculates your pay for pension purposes. There are three main methods used to work out pension contributions:

• Qualifying earnings: This method uses part of your total earnings, including salary, bonuses, and commissions. Only earnings between a set lower and upper limit count towards your workplace pension contributions. Amounts above the upper limit do not count.
• Basic pay: Only your basic salary is used to calculate pension contributions. Extra pay such as bonuses or commissions are not included.
• Total earnings: All of your pay counts. This includes salary, bonuses, and commissions, so all your earnings are used for your pension contributions.

Check with your employer to find out which pension contribution method applies to you. Your HR or payroll team can confirm how your workplace pension contributions are worked out.