Update to NHS Pension Contributions

NHS Pensions

Please note: If your pension band is due to rise in your September payslip, the arrears from the 1st April 2021 to the 31st August 2021 will not be deducted until your October payslip.

Please be aware that your NHS Pension contribution rate has to be re-assessed every time your pay changes. The nationally agreed pay award, which was backdated to the 1st April 2021, will trigger a re-assessment of your contribution rate.  As the pay award was backdated to the 1st April 2021, then it will also been necessary to backdate this assessment to the same date. 

The way that the Payroll system works means that the re-assessment will take place in September, but any arrears due to be taken will not be deducted until October.  Therefore, if your pension band is due to rise, then it will rise on your September payslip, but the arrears from the 1st April 2021 to the 31stAugust 2021 will be deducted in your October payslip.

We would strongly recommend that staff are prudent with reserving the arrears payment until they are aware of any potential recovery of pension contributions

Tier  Full time pensionable pay used to determine contribution rate Contribution rate (before tax relief) (gross) from 1 April 2015
1 Up to £15,431.99 5%
2 £15,432.00 to £21,477.99 5.6%
3 £21,478.00 to £26,823.99 7.1%
4 £28,824.00 to £47,845.99 9.3%
5 £47,846.00 to £70,630.99 12.5%
6 £70,631.00 to £111,376.99 13.5%
7 £111,377.00 and over 14.5%

 

Your contributions will be based upon your annual rate of basic pay, unsocial hours, on call payments and fringe if you get this.  If you are part time, then we have to base the reassessment on your full time equivalent rate of pay.

Staff receiving enhancements through section 2 may see a variation month on month.

Payments in respect of overtime and the Flowers compensation are not included in the calculation.

The contributions are the same irrespective of which section of the NHS Pension Scheme you are a member of.

You will receive tax relief on your contributions.

Read more about NHS Pension contributions.

You can find example scenarios to help with your understanding of this process on the NHS Pension Contributions page on East24.

Published 22nd September 2021