Back in 2022, the Department of Health and Social Care proposed changes to the contribution levels for the NHS pension scheme. The second and final phase of these changes is due to go ahead on the 1st of April 2024.
In the table below, you can check your new contribution position. Will your contribution levels remain the same, increase or even fall?
NHS pension scheme contribution table
| Pensionable Salary Range | Contribution rates from 01 April, based on actual annual pensionable pay |
|---|---|
| up to £13,259 | 5.2% |
| £13,260 to £26,831 | 6.5% |
| £26,832 to £32,691 | 8.3% |
| £32,692 to £49,078 | 9.8% |
| £49,079 to £62,924 | 10.7% |
| £62,924 and above | 12.5% |
Source: Contributions to the NHS Pension Scheme are changing | NHSBSA
Employer contribution increase
The employer’s contribution will increase from 20.6% to 23.7% of pensionable pay.
Whilst many have accused governments of fiscal drag, where allowances such as income rate brackets are not increased each year, the same can’t be said for the tiering on the contribution level.
Contribution tiers will be automatically reviewed in line with the percentage increase in the consumer price index on the 1st of April every year, with the exception of the lowest tier.
Just a quick reminder…
I am sure you are all aware by now, but it’s worth reiterating that the physical contribution is not the amount considered when calculating your annual allowance position.
As always if you have any queries regarding your pension contributions, and would like to chat with an adviser, do get in touch.