Guidance

NHS Pension Scheme member contributions: key messages for staff

Communicate these four key messages to staff to raise awareness of changes to member contributions for the NHS Pension Scheme from 1 October 2022.

27 June 2022

Read key messages (PDF) External link icon

Members of the NHS Pension Scheme pay a percentage of their pensionable pay to the scheme each month, known as a contribution rate. Changes to members' contribution rates will be made from 1 October 2022.

The changes will apply to all members of the NHS Pension Scheme and will impact on the amount that members pay into the scheme each month. Our member contributions poster sets out the changes to the rates for scheme members with different levels of pensionable earnings.

Key messages

Employers should communicate the following four key messages to staff to raise awareness of the changes. The headline messages are set out in key messages poster with further detail provided below.

1

The amount you pay into the NHS Pension Scheme may change from 1 October 2022. 
 

    • Changes to member contribution rates will be phased in over two years, with changes in October 2022 and in 2023 (the exact date in 2023 is still to be confirmed by the government).
    • The changes mean that some scheme members will have a higher rate and will be required to contribute more to the scheme than they currently do, and some will have a lower rate and will contribute less.
    • Many part-time employees will contribute less from 1 October 2022. This is because contribution rates will be based on what an individual actually earns each year, rather than what they would have earned if they worked full time.
    • Details of the new contribution rates can be found on our poster.
2

Your monthly take-home pay may be affected by these changes. 

 

    • The changes to monthly pension contributions, and associated changes to income tax, could have a direct impact on take-home pay from October 2022 and again in 2023.
    • Staff should also be aware that National Insurance contributions were increased by 1.25 percentage points from April 2022, for all staff that already pay National Insurance. This will have an additional impact on take-home pay for staff to consider.
    • The pension contribution changes are being implemented following the 2022-23 pay award. This is intended to help mitigate the impact on take-home pay for members that will be required to pay higher pension contributions.
3

Your employer will continue to contribute 20.6 per cent of your pensionable earnings towards your pension each month. 

    • Employers pay this figure to the NHS Pension Scheme in addition to the member’s contribution. The current employer contribution rate of 20.6 per cent (plus a 0.08 per cent scheme administration levy) is fixed until 31 March 2024.
4

The amount of pension you'll receive in retirement will not be affected by these changes.

    • These changes will only affect the amount that members contribute to the scheme.
    • The amount of pension received in retirement will not be impacted by these changes.
    • Since April 1 2022, all members have been building up pension in the 2015 NHS Pensions Scheme. Our web page can be used to compare how the amount of pensions received in retirement is calculated in each section of the NHS Pension Scheme.

Employers can also use our poster and videos to help promote the value of the NHS Pensions Scheme as an important part of the total reward offer to staff.