Let’s take a look at an example
Kate earns £30,000 gross a year. She contributes 5% (including tax relief) into her pension. So, Kate puts in £100 a month, and this is topped up by another £25 of tax relief from HM Revenue and Customs (HMRC). Her employer also pays 3% which is £75 per month. That means the total going into Kate’s pension pot each month is £200. Kate's total contribution is £125 per month.