# How is pension deduction calculated for an entitled worker who earns less than £6,240 a year?

The employees who do not have a qualifying earnings have an option of joining
into a pension scheme. In our application you can set your pension deduction
based on three different earning basis listed below:

 * Qualifying Earning (QE): Pension deduction starts only when the employee’s
   earns over £6,240 (for 2024-25) a year.

 * All pensionable earning: The worker's total earnings is considered to
   calculate the pension contribution. Pension deduction starts immediately.

 * Custom: You can set up your own earning limits to calculate the pension
   contribution.

Please follow the steps below.

Step 1: Go to the Pension Menu in the tasking Zone and Select the Submenu "Auto
Enrolment pension (AE) setup".

Step 2: Choose the pension provider.

Step 3: Click on the “Additional AE Pension settings” link.

Step 4: Now click on the View/Edit link under “Action”.

Step 5: Further click on edit button in Auto Enrolment pension setup page.

Step 6: Now choose any of the earning basis under employee contribution.

Road Map:

Pension -> Auto Enrolment pension(AE) setup-> Choose pension provider ->
Additional AE Pension settings ->View/Edit link under Action -> Edit-> Earning
basis under employee contribution.
( 'Pension' is the button positioned in the tasking zone menu at the top. It is
the third button from the right)