The NHS employer pension contribution rate is 23.7% of pensionable pay, applicable from 1 April 2024. Add the 0.08% scheme administration levy, and the total comes to 23.78%. However, most NHS employers only remit 14.38% directly through their normal payroll process. The remaining 9.4% is paid centrally by NHS England on behalf of employers. This guide explains exactly what those figures mean, who pays what, how the rates compare across England, Scotland, Wales and Northern Ireland, and — crucially — what those contributions are really worth to you as an NHS employee.
What Is the Current NHS Pension Employer Contribution Rate?
From 1 April 2024, the amount employers pay towards members’ pensions went up from 20.6% to 23.7% of pensionable pay. On top of that, an employer rate of 23.78% applies, inclusive of the administration charge.
Pensionable pay is your actual annual pay, so the salary you earn in your NHS role. It does not include overtime (unless you are a part-time worker earning up to full-time equivalent hours), allowances not counted as pensionable, or non-contractual payments. Everything the NHS Pension Scheme calculates for you — your accrual, your benefits, your contributions — starts with pensionable pay.
The NHS Pension Scheme (the 2015 Scheme, which is a Career Average Revalued Earnings arrangement, known as CARE) is a defined benefit scheme. That means your pension income in retirement is based on a guaranteed formula — not on a pot of money that goes up and down with the stock market. Employer contributions fund the overall cost of providing those guaranteed benefits. The NHS Pension Scheme is unfunded, and its liabilities are underwritten by the Exchequer.
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ToggleKey Fact #1: The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2020. The results of this valuation set the employer contribution rate payable from 1 April 2024 at 23.7% of member pensionable pay.
Why Do NHS Employers Only Pay 14.38% Instead of 23.7%?
This is the question that confuses most people — and it is a completely reasonable one to ask.
The Department of Health and Social Care (DHSC) confirmed that the transitional approach that has operated since 2019/20 for employer contributions will continue in 2025/26. Employers should ensure that their payroll provider continues to apply an employer contribution rate of 14.38%.
So there is a difference between the headline rate (23.7%) and what employers actually remit through payroll (14.38%). The gap of 9.4% is not lost — it is paid separately by the government on behalf of employers. Here is how that funding split works in practice:
| Component | Rate |
|---|---|
| Employers pay directly (via NHSBSA payroll) | 14.38% |
| Government pays centrally (via NHS England / DHSC) | 9.40% |
| Scheme administration levy | 0.08% |
| Total employer rate | 23.78% |
NHSBSA will continue to only collect 14.38% from employers, and organisations should plan on this basis.
The reason the government absorbs that 9.4% is straightforward. When the SCAPE (Superannuation Contributions Adjusted for Past Experience) discount rate changed, it caused the employer contribution requirement to rise. The government committed to funding this increase so that NHS organisations would not face the full additional cost directly from their own budgets. In short, the headline employer rate went up — but the bill going to your payroll system stayed the same.
What this means for different types of organisations:
- NHS trusts, foundation trusts and integrated care boards (ICBs): Central payments are made by NHS England. Carry on as normal and plan on the 14.38% basis.
- Local authorities, Ministry of Defence and University Medical Schools: These organisations are invoiced separately. DHSC invoices will increase to account for the additional 3.1% contribution rate, and the University Medical School invoices will increase to take into account the remaining 0.46% of the 3.1% rate.
- DHSC arms-length bodies: Invoices increase to account for the additional rate, and funding is provided accordingly.
💡 Tip for HR and payroll teams: Do not change the employer contribution rate in your payroll software from 14.38%. The employer NHS Pension Rate remains at 23.7% in 2025/26, but since the increase is funded centrally, the rate remains at 14.38% in payroll.
How Is the NHS Employer Contribution Rate Set?
The employer contribution rate does not change arbitrarily. It is set through a formal process called a scheme valuation, carried out by the Government Actuary’s Department (GAD) on behalf of HM Treasury and the DHSC.
A scheme valuation looks at the full cost of paying pension benefits, now and in the future. It compares the money coming into the scheme (from member and employer contributions) against the projected cost of paying all the guaranteed pensions owed. Contributions due to the scheme are set at rates determined by the scheme’s Actuary and approved by the Secretary of State for Health and Social Care.
The valuation happens every four years. At each valuation, if the cost of providing benefits has gone up, employer and/or member contribution rates will typically increase to match.
Key Fact #2: The 2024 actuarial valuation is currently being prepared and will be published before new contribution rates are implemented from April 2027.
That means the employer rate of 23.7% is confirmed through the 2025/26 tax year. Any change will not take effect until at least April 2027 — and you will receive advance notice well before then.
NHS Employer Contribution Rate History: How Has It Changed Over Time?
If you have worked in the NHS for a while, you may remember the employer contribution rate being different. Here is the full picture of how it has changed, going back to 2015:
| Period | Headline Employer Rate | Rate Employers Pay Directly | Centrally Funded |
|---|---|---|---|
| 2015/16 – 2018/19 | 14.38% | 14.38% | 0% |
| 2019/20 – 2023/24 | 20.68% (incl. levy) | 14.38% | 6.3% |
| 2024/25 – 2026/27 | 23.78% (incl. levy) | 14.38% | 9.4% |
| From April 2027 | To be confirmed | TBC | TBC |
Notice something important: the amount employers pay directly through payroll has stayed at 14.38% since 2015. Every single increase in the headline rate since 2019 has been absorbed by central government funding, not passed directly to NHS organisations through payroll.
The previous increase in 2019 was driven by an earlier scheme valuation. The valuation carried out as at 31 March 2016 confirmed that an increase in the employer contribution rate from 14.9% to 20.9% was required from 1 April 2019 to 31 March 2023. The most recent increase — from 20.6% to 23.7% — came from the 2020 valuation, which found that the cost of providing NHS pensions had risen again.
NHS Pension Employer Contribution Rates by UK Nation
The NHS Pension Scheme does not operate the same way across all four UK nations. England and Wales share the same scheme and the same rates, but Scotland and Northern Ireland run separate pension schemes under their own regulations and administrators.
Here is how the employer contribution rates compare for 2025/26:
| Nation | Employer Rate (2025/26) | Administrator |
|---|---|---|
| England & Wales | 23.7% (+0.08% levy = 23.78%) | NHS Business Services Authority (NHSBSA) |
| Scotland | 22.5% | Scottish Public Pensions Agency (SPPA) |
| Northern Ireland | 23.2% | HSC Pension Service |
The employer NHS Pension Rate remains at 22.5% in 2025/26 for Scotland. The valuation carried out as at 31 March 2020 confirmed that an increase in the employer contribution rate from 20.9% to 22.5% will be required from 1 April 2024 to 31 March 2027.
For Northern Ireland, the employer NHS Pension Rate remains at 23.2% in 2025/26.
⚠️ Important: If you work in Scotland, your pension is administered by the SPPA under the NHS Pension Scheme (Scotland) Regulations 2015. Your rights and rates may differ slightly from those in England and Wales. Always check with your employer or the SPPA directly if you are unsure.
How Much Does My Employer Actually Pay Into My NHS Pension?
This is the question NHS staff ask most often — and the answer is genuinely impressive.
The employer contribution rate is 23.7 per cent of members’ pensionable pay. That means for every £1 of pensionable pay you earn, your employer is contributing nearly 24 pence toward the cost of your pension.
To put that into real money, here is what the employer contribution looks like across common NHS pay bands (using 2025/26 Agenda for Change salary midpoints):
| NHS Pay Band | Approximate Salary | Employer Contribution (23.7%) | Monthly Equivalent |
|---|---|---|---|
| Band 5 (mid-point) | £31,469 | ~£7,458 per year | ~£622/month |
| Band 6 (mid-point) | £37,898 | ~£8,982 per year | ~£749/month |
| Band 7 (mid-point) | £46,148 | ~£10,937 per year | ~£911/month |
| Band 8a (mid-point) | £55,877 | ~£13,243 per year | ~£1,104/month |
| Consultant (mid-range) | £105,000 | ~£24,885 per year | ~£2,074/month |
These figures represent the total employer contribution credited to the scheme — including both the 14.38% your employer pays directly and the 9.4% funded centrally. The full 23.7% is credited on your behalf, regardless of the behind-the-scenes funding split.
Key Fact #3: The UK average employer pension contribution is around 4.5%. The NHS employer rate of 23.7% is more than five times the UK average, and nearly eight times the statutory minimum employer contribution of 3% required under auto-enrolment rules. No private-sector employer is legally required to come anywhere close to what the NHS contributes toward your pension.
Does the NHS Match Pension Contributions?
This is a common point of confusion — and it is worth clearing up properly.
In a typical workplace defined contribution (DC) pension — like NEST or a standard auto-enrolment scheme — employers often “match” what you put in, up to a certain percentage. For example, an employer might match your 5% contribution with their own 5%.
The NHS Pension Scheme does not work that way. It is a defined benefit scheme, which means the employer contribution rate is fixed at 23.7% of your pensionable pay — regardless of how much you contribute. Whether you pay the minimum 5.2% or the maximum 12.5%, your employer still contributes 23.7%.
This is actually more generous than a matching scheme, especially for lower earners:
| Your Contribution Rate | Employer Contribution Rate | Employer-to-Employee Ratio |
|---|---|---|
| 5.2% (lowest band) | 23.7% | ~4.6: 1 |
| 9.8% (mid-range) | 23.7% | ~2.4: 1 |
| 12.5% (highest band) | 23.7% | ~1.9: 1 |
In a standard auto-enrolment scheme, the total minimum contribution (employer and employee combined) is just 8% of qualifying earnings, with at least 3% from the employer and 5% from the employee. In the NHS Pension Scheme, a Band 5 nurse pays around 9.8% and receives 23.7% from the employer — a combined total of roughly 33.5% of pensionable pay going toward their retirement.
What Are the NHS Pension Employee Contribution Rates for 2025/26?
All NHS Pension Scheme members pay a percentage of their pensionable pay to the scheme each month. This is called a contribution rate.
From 1 April 2025, the tiered contribution ranges to work out the contribution rate a member pays for membership of the scheme changed. The six tiers in England and Wales — updated to reflect the Agenda for Change pay award for England — are:
England & Wales — Member Contribution Rates from 1 April 2025 (post AfC pay award, effective 1 August 2025, backdated to 1 April 2025):
| Pensionable Pay Range | Contribution Rate |
|---|---|
| Up to £13,259 | 5.2% |
| £13,260 to £27,797 | 6.5% |
| £27,798 to £33,868 | 8.3% |
| £33,869 to £50,845 | 9.8% |
| £50,846 to £65,190 | 10.7% |
| £65,191 and above | 12.5% |
Key Fact #4: The table above takes into account the 2025 Agenda for Change pay award for England, announced as 3.6 per cent consolidated. The salary thresholds used to determine a member’s contribution rate were uplifted from 1 April 2025 in line with the Consumer Prices Index (CPI) from September 2024 (1.7 per cent). Because the AfC pay award of 3.6% was higher than the September 2024 CPI figure of 1.7%, the tier thresholds were updated again to reflect the higher pay award — protecting members from accidentally moving into a higher contribution tier simply because of a pay rise.
💡 Tip for employees: Your contributions are taken from your pay before income tax is applied. This means you automatically get tax relief on everything you pay into the NHS Pension Scheme. If you are a basic-rate taxpayer, a contribution rate of 9.8% effectively costs you around 7.8% in real take-home pay terms. If you pay higher-rate tax (40%), a gross contribution of 12.5% effectively costs you only around 7.5% after tax relief.
Since 1 October 2022, member contribution rates have been based on actual pensionable pay, rather than whole-time equivalent (WTE). This was a significant change for part-time workers, who were previously placed in tiers based on their full-time equivalent salary — often paying more than they needed to.
NHS Pension Contribution Rates for Scotland and Northern Ireland
Member contribution tiers also differ by nation. Here is a summary:
Scotland — Member Contribution Rates from 1 April 2025:
| Pensionable Earnings Band | Contribution Rate |
|---|---|
| Up to £13,330 | 5.7% |
| £13,331 to £26,762 | 6.4% |
| £26,763 to £31,669 | 7.0% |
| £31,670 to £39,734 | 8.7% |
| £39,735 to £41,669 | 9.8% |
| £41,670 to £50,650 | 10.5% |
| £50,651 to £54,811 | 11.2% |
| £54,812 to £76,652 | 11.6% |
| £76,653 and above | 12.7% |
Northern Ireland — Member Contribution Rates from 1 April 2025:
| Pensionable Earnings | Contribution Rate |
|---|---|
| Up to £13,259 | 5.2% |
| £13,260 to £27,288 | 6.7% |
| £27,289 to £33,247 | 8.5% |
| £33,248 to £49,913 | 10.0% |
| £49,914 to £63,994 | 10.9% |
| £63,995 and above | 12.7% |
Note that Scotland uses nine tiers rather than the six used in England, Wales and Northern Ireland, and the rates differ slightly at each band.
How Do Employer Contributions Work for GPs and Locums?
GPs and locum doctors have slightly different pension contribution rules — and it matters, because the contribution rate applies differently depending on the type of role you hold.
For salaried GPs employed directly by a GP practice, employer contributions work in the same way as for any other NHS officer. The employer contributes 23.7% of the salaried GP’s pensionable pay.
For GP partners, the position is more complex. GP partners are effectively both employer and employee within the scheme. They pay both the employer and employee contributions themselves based on their NHS income.
For GP locums, the key concept is annualising. Annualising mainly impacts GP locums who do not have an underlying Type 1 or Type 2 role — such as a partner, salaried or Out of Hours GP role — or when a Type 1 or Type 2 GP takes time out of work between employment contracts. Annualising means your actual income is grossed up to what you would have earned over 365 days, so that the correct contribution tier applies.
Now that all members are contributing towards the 2015 Scheme, practitioner pay may be annualised, and the updated salary ranges will apply. If a member also works in an officer post — for example, as a salaried hospital doctor — contribution rates are calculated separately.
Separate officer roles held will initially be viewed separately, and the contribution for each role will be based on the actual annual earnings for each role. This means that different tiered rates could apply where an officer holds more than one role. Aggregating all officer roles for the purposes of assessing a tiered rate is being explored.
💡 Tip for GPs and locums: If you hold both a practitioner and officer role — for example, a GP partner who also does some salaried hospital work — your contributions are calculated separately for each role. Check with your employer or NHSBSA to make sure your payroll is set up correctly.
What Happens to Employer Contributions If You Opt Out of the NHS Pension Scheme?
Let us be very direct about this, because it is one of the most important financial decisions an NHS employee can make.
If you opt out of the NHS Pension Scheme, you do not receive the 23.7% employer contribution as extra salary instead. In almost all cases, that money simply stops going anywhere on your behalf. It is not invested in an alternative pension. It does not appear in your pay packet. It is gone.
To put that into pounds and pence, using our earlier worked examples:
- A Band 5 nurse earning £31,469 would lose approximately £7,458 per year in employer pension contributions.
- A Band 8a manager earning £55,877 would lose approximately £13,243 per year.
- A consultant earning £105,000 would lose approximately £24,885 per year.
Beyond the employer contribution itself, opting out also means losing:
- Death-in-service cover: A lump sum paid to your family if you die while in NHS employment.
- Ill-health retirement pension: A guaranteed income if you are unable to work due to ill health.
- Inflation-linked pension for life: Your NHS pension increases each year in line with the Consumer Price Index (CPI) — something almost no private pension can replicate with certainty.
- Surviving partner pension: A pension paid to your spouse or civil partner after your death.
There is one narrow exception worth knowing about: contribution recycling. Some NHS trusts and employers may offer a salary supplement to senior staff — typically senior medical staff affected by the annual allowance or tapered annual allowance — who opt out for pension tax reasons. This is not guaranteed, it is not universal, and the amount available is typically limited. If you are a senior doctor or consultant considering opting out due to pension tax charges, speak to your employer about whether any contribution recycling arrangement is in place, and always take independent financial advice before making any decision.
Key Fact #5: The UK statutory minimum employer auto-enrolment contribution is 3% of qualifying earnings. An NHS employee who opts out of the NHS Pension Scheme and is auto-enrolled into an alternative qualifying pension scheme could find their employer only legally required to contribute 3% — compared to the 23.7% they would have received in the NHS scheme. That is a difference of more than 20 percentage points on every pound of pensionable pay.
How Employer Contributions Work on Sick Leave, Maternity Leave and Reduced Pay
One thing many NHS staff do not realise is that pension contributions — including the employer contribution — continue even when you are not earning your full salary.
In line with the Carer’s Act 2023, members who take carer’s leave will continue to build up pension benefits during this time away from work. Employers will continue to pay contributions based on their pensionable pay, and members will pay any contributions they owe when they return to work.
The same principle applies to maternity leave, paternity leave, adoption leave and periods of authorised sick leave. Your pension accrual continues based on your deemed (full) pay — meaning your pension does not suffer just because your take-home pay is temporarily reduced.
From 1 October 2022, member contribution rates during periods of reduced pay should be based on the actual reduced pensionable pay figure, rather than what the member would have been paid if they were on full pay. This amendment will not affect benefit accrual, and members will still build up benefits based on their deemed pay.
In practice, this means:
- Employer contributions continue based on your full pensionable pay (deemed pay).
- Your own contribution is calculated on your reduced actual pay, so you pay less from your reduced income.
- Your pension accrual is still based on your full pensionable pay.
This is a genuinely valuable protection. Your future pension does not take a hit just because you needed to take time away from work.
💡 Tip: All NHS regions have recently undergone consultation to consider how member contributions should be calculated where members receive less than full pay, for example, due to maternity leave or sickness absence. Check with your payroll team to make sure your contributions are being calculated correctly during any period of reduced pay.
How to Calculate Your Total NHS Pension Contributions
Working out your total pension contribution — from both you and your employer — is straightforward once you know your pensionable pay and which contribution tier you fall into.
The formula is:
Total Annual Contribution = (Pensionable Pay × Employer Rate) + (Pensionable Pay × Your Tier Rate)
Here is a worked example for a Band 6 nurse earning £37,898 in 2025/26:
| Component | Calculation | Annual Amount |
|---|---|---|
| Employee contribution (9.8% tier) | £37,898 × 9.8% | £3,714 |
| Employer contribution (23.7%) | £37,898 × 23.7% | £8,982 |
| Total pension contribution | 33.5% of pay | £12,696 |
That means for every year a Band 6 nurse stays in the NHS Pension Scheme, over £12,600 goes toward the cost of their guaranteed retirement income — with nearly £9,000 of that coming directly from the employer.
For payroll administrators, it is worth noting that the primary reason for timing pressures around contributions relates to the majority of contributions paid by employers being due by the 19th of the month, for the previous month’s payroll. Make sure your payroll system is set to remit on time every month to avoid any late-payment issues with NHSBSA.
The changes to contribution tier thresholds have automatically been updated in the Electronic Staff Record (ESR). If you use ESR to manage NHS payroll, the correct rates should already be applied from 1 April 2025.
Key Fact #6: At 31 March 2024 there were 7,823 participating employers in the NHS Pension Scheme, covering NHS trusts, foundation trusts, GP practices, integrated care boards (ICBs), Local Health Boards (in Wales), arm’s-length bodies, direction bodies, local authorities and approved independent providers. That means millions of NHS workers across thousands of organisations benefit from the same employer contribution structure every month.
Frequently Asked Questions About NHS Pension Employer Contributions
What is the NHS employer pension contribution rate for 2025/26?
The employer NHS Pension Rate remains at 23.7% in 2025/26. Employers should ensure that their payroll provider continues to apply an employer contribution rate of 14.38% for 2025/26. The difference — 9.4% — is funded centrally by NHS England and DHSC.
Why do I only see 14.38% on my payslip, not 23.7%?
Your payslip shows only what your employer physically remits to NHSBSA through payroll. The NHS Business Services Authority will continue to only collect 14.38% from employers under their normal monthly payment process to the NHS Pension Scheme. The remaining 9.4% is paid separately by central government. The full 23.7% is still credited to the scheme on your behalf.
What is the NHS employer contribution rate in Scotland?
The employer contribution rate for the period from 1 April 2024 is 22.5% of pensionable pay for the Scottish NHS Pension Scheme, administered by the Scottish Public Pensions Agency (SPPA). This rate applies to the 1995, 2008 and 2015 pension sections in Scotland.
When will the employer contribution rate change next?
The 2024 actuarial valuation is currently being prepared and will be published before new contribution rates are implemented from April 2027. Until then, the 23.7% rate remains confirmed.
Does the employer contribution go into a personal pension pot?
No. The NHS Pension Scheme is an unfunded scheme, and its liabilities are underwritten by the Exchequer. There is no individual investment pot. The employer contribution funds the overall cost of providing your guaranteed defined benefit pension — not a personal fund that belongs to you individually.
Is the NHS Pension Scheme run as salary sacrifice?
No. NHS pension contributions are deducted from your gross pay before income tax is applied, which means you receive automatic tax relief. However, this is different from salary sacrifice. The NHS Pension Scheme is not a salary sacrifice arrangement. You do not reduce your contractual salary to receive pension benefits — you receive tax relief on contributions made from your gross pay.
How much employer pension contribution do I lose if I opt out?
You lose the full 23.7% employer contribution. For a Band 5 member earning around £31,469, that is approximately £7,458 per year. For a Band 8a member earning around £55,877, that is approximately £13,243 per year. You also lose death-in-service cover, ill-health retirement benefits and an inflation-linked pension for life.
What is the NHS employer contribution rate for GPs?
The same 23.7% employer rate applies for England and Wales. However, how it is applied depends on the GP’s role. Salaried GPs have the rate applied by their employing practice in the normal way. GP partners pay both employer and employee contributions themselves. Locum GPs are subject to annualising rules that affect how their pensionable pay is calculated for contribution purposes.
Key Takeaways
Here is a quick summary of everything covered in this guide:
- The NHS employer pension contribution rate is 23.7% of pensionable pay (23.78% including the 0.08% administration levy), applicable from 1 April 2024.
- Most NHS employers remit only 14.38% directly through payroll. The remaining 9.4% is funded centrally by NHS England and DHSC under a transitional arrangement confirmed to continue through 2025/26.
- The rate is set by a four-yearly actuarial scheme valuation by the Government Actuary’s Department. The next rate change is expected from April 2027, based on the 2024 valuation currently being prepared.
- Employer rates differ across the UK: England & Wales = 23.7%, Scotland = 22.5%, Northern Ireland = 23.2%.
- Employee contribution rates in England and Wales range from 5.2% to 12.5% across six tiers, based on actual pensionable pay. Tiers were updated from 1 April 2025 to reflect both the September 2024 CPI figure (1.7%) and the higher 2025 AfC pay award (3.6%).
- The NHS employer rate of 23.7% is more than five times the UK employer pension average of 4.5%, and nearly eight times the 3% auto-enrolment legal minimum.
- Opting out of the NHS Pension Scheme means losing the full employer contribution — potentially worth thousands of pounds per year — along with death-in-service cover, ill-health retirement benefits and an inflation-linked pension for life.
- Pension accrual continues at your full deemed pay during maternity, sick and carer’s leave — protecting your future retirement income even when your take-home pay is temporarily reduced.
- There are currently over 7,800 participating employers in the NHS Pension Scheme, covering millions of NHS workers across England and Wales.
This guide covers the NHS Pension Scheme for England and Wales unless stated otherwise. Rates for Scotland (administered by the Scottish Public Pensions Agency) and Northern Ireland (administered by the HSC Pension Service) are referenced for comparison. This article is for informational purposes only. For personalised pension advice, speak to an independent financial adviser. For employer-specific guidance, contact the NHSBSA employer helpline or NHS Employers.
Last reviewed: February 2026. Sources: NHSBSA, NHS Employers, BMA, SPPA, DHSC, NHS Pension Scheme Annual Report and Accounts 2024–2025.