NHS Pension Scheme member contributions
Members of the NHS Pension Scheme pay a proportion of their pensionable pay towards the cost of their pension. Our guidance supports you to help staff understand their contribution rate and how it may change annually.
This page is designed to give employers an overview of member contribution rates and annual changes. If you are an employee or member of the scheme, you can find out more on the NHS Pensions website.
The employer contribution rate is 23.7 per cent of members’ pensionable pay. Find out more on our employer contribution web page.
Member contribution rates from 1 April 2025
The table below shows the member contribution rates from 1 April 2025.
The table takes into account the increase to pensionable pay ranges calculated in line with the Consumer Price Index (CPI) rate from September 2024 (1.7 per cent).
The Agenda for Change pay award for England has been announced as 3.6 per cent consolidated, backdated to 1 April 2025. There will, therefore, be a further change to pensionable pay ranges following a short period of consultation and changes to regulations. This change will also be backdated to 1 April 2025. We will update this page once the pensionable pay ranges are confirmed.
Click on the icon at the top right corner of the table to download as a poster.
Annual changes to the member contribution pensionable pay ranges
Annual indexation of pensionable pay ranges
From 1 April every year, pensionable pay ranges will increase by the rate of CPI from the previous September. This will automatically be updated on ESR from 1 April each year.
CPI measures the rate of inflation of consumer goods and services.
There will be no change to the lowest tier or entry to the second tier. This is because those earning in the lowest tier will not benefit from tax relief on their pension contributions.
Agenda for change pay award for England
If the Agenda for Change (AfC) pay award for England announced later in the year, is higher than the CPI rate used for indexation on 1 April, there will be another adjustment to pensionable pay ranges, which is backdated to 1 April in the same way as the pay award. This two-stage approach was designed to reduce the instances of members moving into higher pension contribution tier and receiving a reduction in take home pay because of a pay award.
This second change requires a period of consultation and amendments to regulations, which could take two months. Changes would also be required to the electronic staff record (ESR) payroll system.
Impact of the two-step approach
Contributions are based on actual pensionable pay, which means that some members may move into a lower tier from 1 April, because of the CPI change.
When the AfC pay award for England is announced later in the year, it could be backdated, and members could receive back pay. This would increase their pensionable pay, meaning a higher pension contribution rate is applicable from 1 April, resulting in pension contribution arrears being payable.
Background to the changes to member contributions
You can read more about the background to the changes to the member contribution structure, including DHSC consultations and our responses on behalf of employers in the NHS on our NHS Pension Scheme changes from April 2024 web page.
