Pension Contributions With No Earnings: the £2,880 to £3,600 Rule
You don't need a job to get pension tax relief. A non-earning partner, a child, a grandchild or a full-time student can have up to £2,880 a year paid into a pension, and the government adds £720 on top. Here is how the limit works in 2026/27, who can use it and where people trip up.
With no earnings you can get tax relief on up to £3,600 gross a year. You (or anyone on your behalf) pay £2,880 into a relief-at-source pension and the provider claims £720 from HMRC 12. The £3,600 "basic amount" only works through relief at source, not a net pay workplace scheme 3, and contributions after age 75 get no relief 4. If you have some earnings, your limit is the higher of those earnings and £3,600 5.
- The basic amount for tax relief is £3,600 gross, or 100% of UK taxable earnings if higher. 2
- Pay £2,880, the provider adds 20% (£720): £3,600 goes into the pension. 1
- A parent, grandparent or partner can pay it in for you; it is still your contribution. 3
- The relief on the shortfall up to £3,600 is only given through relief at source. 3
- No relief on contributions paid after you reach 75. 4
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Who counts as having "no earnings"?
For pension tax relief, "earnings" means relevant UK earnings: employment income and profits from a trade, profession or vocation, plus patent income if you devised the invention 5. Dividends, savings interest, rent and pension income are not earnings for this test. So someone who lives on investment income or a partner's salary has no relevant earnings, however wealthy they are, and their limit is the £3,600 basic amount.
You also need to be a "relevant UK individual" for the year. The most common way to qualify is simply being UK resident at some time in the tax year; you can also qualify through UK earnings, UK residence in one of the previous five tax years (if you were also resident when you joined the scheme), or overseas Crown employment 5.
How the £2,880 becomes £3,600
Under relief at source you pay from money that has, in principle, already been taxed, and the provider claims basic-rate relief of 20% of the gross amount from HMRC. £3,600 × 20% = £720, and £3,600 − £720 = £2,880 1. You get the £720 even though you pay no Income Tax yourself: that is the point of the basic amount.
| Paid in (by you or on your behalf) | £2,880 |
| Basic-rate relief claimed by the provider (20% of gross) | £720 |
| Total in the pension | £3,600 |
Monthly, that is £240 paid in and £300 reaching the pot. The limit is per tax year (6 April to 5 April) and does not roll over: if you only pay in £1,000 this year, you can't pay £4,760 next year to catch up.
Worked examples
A non-earning partner
Priya looks after the children full time and has no income of her own. Her partner pays £240 a month into a stakeholder pension in Priya's name. Over the year that is £2,880, the provider adds £720, and Priya's pension receives £3,600. The relief belongs to Priya's pension; her partner gets no tax relief for paying it.
A child, from birth to 18
A grandparent pays £2,880 a year into a junior SIPP from the year a grandchild is born. Over 18 tax years that is £51,840 paid in and £12,960 of relief added: £64,800 gross before any investment growth. The money belongs to the child but stays in the pension until at least the normal minimum pension age, which rises from 55 to 57 on 6 April 2028.
A student with a part-time job
Tom is at university and earns £5,000 a year from a weekend job. His limit is the higher of his earnings and £3,600, so £5,000 gross 2. In a relief-at-source pension he can pay £4,000 and have £1,000 added. If he earned only £2,000, his limit would still be £3,600, but the relief on the slice above his £2,000 of earnings would only come through a relief-at-source scheme 3.
| Situation | Relief limit (gross) | Most you pay in with relief |
|---|---|---|
| No earnings at all | £3,600 | £2,880 |
| £2,000 earnings | £3,600 | £2,880 |
| £5,000 earnings | £5,000 | £4,000 |
| £20,000 of rent and dividends only | £3,600 | £2,880 |
All figures assume a relief-at-source pension, so you pay 80% of the gross amount.
Mistakes to avoid
- Using a net pay workplace scheme. Net pay gives relief by taking the contribution off taxable pay, so with no taxable pay there is nothing to relieve through payroll. The £3,600 basic amount needs relief at source 3.
- Paying in more than £2,880 with no earnings. You can, but the excess gets no tax relief, and the provider may have to return relief it has claimed on it.
- Forgetting the age limit. Contributions paid after age 75 are not relievable 4.
- Assuming the payer gets the relief. The contribution, and the relief, are the member's. A parent paying for a child gets nothing off their own tax bill.
Does it count towards the annual allowance?
Yes. The £3,600 counts towards the member's £60,000 annual allowance, which covers everything paid in by you or anyone else in the tax year 6. At these amounts that is rarely a problem, unless the person has already started drawing taxable income flexibly and is under the £10,000 money purchase annual allowance.
Frequently asked questions
How much can I pay into a pension with no earnings?
You can get tax relief on up to £3,600 gross a year. You pay £2,880 into a relief-at-source pension and the provider claims £720 from HMRC. You can pay in more, but the excess gets no tax relief.
Can I pay into a pension for my child or grandchild?
Yes. Anyone can pay into a relief-at-source pension such as a junior SIPP on a child's behalf. It counts as the child's contribution, so the child's pension gets the 20% relief: £2,880 paid in becomes £3,600. The person paying gets no tax relief themselves.
Does the £3,600 limit work with a workplace pension?
Only if the scheme uses relief at source. HMRC gives relief on the shortfall up to the £3,600 basic amount only through relief at source, so a net pay workplace scheme gives no relief to someone with no taxable pay.
I have a part-time job. What is my limit?
The higher of your relevant UK earnings and £3,600. With £5,000 of earnings your limit is £5,000 gross, so £4,000 paid into a relief-at-source pension.
Do dividends or rental income count as earnings?
No. Relevant UK earnings are employment income, trading profits and some patent income. Someone living on dividends, rent or interest has a relief limit of £3,600 gross.
Is there an age limit?
Yes. Contributions paid after you reach 75 do not get tax relief.
Related: what counts as relevant UK earnings · relief at source calculator · net pay and low earners
Sources & references
- Pension tax relief — GOV.UK
- Pension schemes rates and allowances — HMRC (GOV.UK)
- PTM044100: tax relief for members, conditions — HMRC Pensions Tax Manual
- Finance Act 2004, section 188: relief for contributions — legislation.gov.uk
- Finance Act 2004, section 189: relevant UK individual and relevant UK earnings — legislation.gov.uk
- Pension annual allowance — GOV.UK
Every headline figure above is checked against the official GOV.UK / HMRC guidance listed here for the 2026/27 tax year. Links open on GOV.UK.
Disclaimer: General information for the 2026/27 tax year, not financial advice. Pension providers set their own rules on who can open a pension for a child and who must manage it.