Pension contributions can be calculated in different ways, but there are minimum total contributions levels that must be paid under automatic enrolment.
If you are auto-enrolled onto a pension scheme by your umbrella employer, how much you pay could be based on your ‘qualifying earnings’ (earnings from employment, before PAYE and National Insurance). However, your umbrella employer could base it on a different definition of pensionable pay. In addition, the government adds tax relief to the contributions you have paid.
The government has set minimum levels of contributions that must be paid to the workplace pension scheme by you and your umbrella employer. From April 2021 onwards, your employer must pay at least 3% of qualifying earnings, and you will have to pay 4% of qualifying earnings. The government then adds tax relief at 1% of qualifying earnings.