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Update on NHS Pension Scheme employer contribution rates for 2021/22

NHS England and NHS Improvement confirms employer contribution rates for the NHS Pension Scheme 2021/22.

15 January 2021

NHS England and NHS Improvement (NHSEI) has confirmed that the employer contribution rate for the NHS Pension Scheme will remain at 20.6 per cent of pensionable pay, with an additional administration levy of 0.08 per cent, for the 2021/22 financial year.

Employers will continue to pay 14.38 per cent of pensionable pay to the NHS Business Services Authority in 2021/22, with the remaining 6.3 per cent being funded centrally. The employer contribution rate increased from 14.3 per cent to 20.6 per cent on 1 April 2019.

The government provided additional funding to cover this increase for employers in 2019/20 and 2020/21. In light of the COVID-19 pandemic, NHSEI have confirmed that this funding will continue during 2021/22 to maximise stability for employers.

These central payments will apply to employers receiving funding from NHS England budgets or from the NHS to deliver NHS services. Member contributions will remain unchanged in 2021/22.

More information can be found on the NHS BSA website.