The total minimum level of pension contributions that must be paid, once phased in, is 8% of the jobholder's qualifying earnings £5,715 and £38,185 (in 2010/11 terms). Employers have to pay at least 3%, and the jobholder has to pay the balance up to the total 8%. The jobholder's contribution will include tax relief for example, if they pay 4% plus they will get 1% tax relief.

Under pensions reform the minimum contribution requirements apply to workers who:

• are jobholders aged between at least 22 and under state pension age who earns above the earnings trigger for automatic enrolment (currently £7,475), or
• are other jobholders aged at least 16 and under 75 who have opted in to an auto-enrolment scheme, and
• meet the above criteria and who are already active members of a qualifying scheme

Most employers don't base their existing contributions on a band of total earnings and will need to work with their advisers to assess if their current contributions meet the new minimum contribution test for each of their jobholders who are members of the pension scheme. If not, they may have to make changes.

You'll find full details in our technical factsheets. Please take time to read these.

What are qualifying earnings?

They are a band of earnings, between £5,715 and £38,185 (in 2010/11 terms) within a 12-month pay period, based on earnings which include:

• salary or wages
• commission
• bonuses
• overtime
• certain statutory payments, for example maternity or sick pay

Self-certification

The Pensions Act 2008 allows for a process known as self-certification. This allows employers to certify with the Pensions Regulator that, overall, their scheme meets the quality test for a defined contribution scheme.

The pension industry and employer groups have worked very closely with the Department for Work and Pensions (DWP) to develop a workable self-certification model. So far the model is still a proposal, but the approach has been accepted in principle by the government.

Any qualifying scheme that meets one of the following criteria can self-certify and will meet the minimum contribution test:

• Minimum 9% contribution of pensionable pay (including 4% employer contribution), or
• Minimum 8% contribution of pensionable pay (with a 3% employer contribution), as long as pensionable pay makes up at least 85% of the total bill, or
• Minimum 7% contribution of pensionable pay (3% employer contribution), as long as the total pay bill is pensionable

Employers will have to self-certify every year.