Last updated 10 June 2026
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NHS Pension Contributions: Rates and Tiers
Almost everyone employed by the NHS is automatically enrolled in the NHS Pension Scheme — Agenda for Change staff, hospital doctors and consultants, and more. The scheme is a defined-benefit pension — your retirement income is based on your career-average (CARE) earnings, not investment returns.
Contributions are deducted from your salary each month. The rate you pay depends on your actual annual pensionable pay.
Contribution Tiers (2026/27)
The NHS Pension Scheme uses six tiers. Your tier is based on your whole pensionable pay, not just the portion in a particular band. Moving to a higher pay point can push you into a higher tier, increasing the percentage deducted from every pound you earn.
| Tier | Pensionable Pay | Rate |
|---|---|---|
| 1 | Up to £13,259 | 5.2% |
| 2 | £13,260 – £28,854 | 6.5% |
| 3 | £28,855 – £35,155 | 8.3% |
| 4 | £35,156 – £52,778 | 9.8% |
| 5 | £52,779 – £67,668 | 10.7% |
| 6 | £67,669 and above | 12.5% |
Source: NHSBSA member contributions
What Your Employer Pays
Your tier is only part of the cost. On top of it, your employer pays a much larger share straight into the scheme. In England and Wales that is 23.7% of your pensionable pay, plus a 0.08% admin charge — 23.78% in all.
23.7%
Employer contribution on top of your tier (England & Wales)
That is roughly three times what most members pay. You never see it on your payslip, and it is not taken from your pay — it is extra money paid in alongside your own contribution. It is also the main reason opting out is so costly: leave the scheme and you give up this employer share as well as your own guaranteed pension.
Scotland and Northern Ireland run their own NHS schemes with their own employer rates — 22.5% through the SPPA in Scotland, and 23.2% through HSC Pensions in Northern Ireland.
Source: NHSBSA employer contribution rates (from 2024/25; set by scheme valuation).
NET Pay Arrangement
The NHS Pension Scheme uses a NET pay arrangement. Your contribution is the tier rate applied to your pensionable pay — your basic salary plus any pensionable allowances, which can be less than your total gross pay. It’s taken off before income tax is worked out, so you get full tax relief automatically through your payslip.
National Insurance is still calculated on your full gross pay before pension. This is a key difference from salary sacrifice, where both tax and NI are reduced. For most NHS staff on standard AfC contracts, salary sacrifice is not available.
How This Affects Take-Home Pay
Two people on the same gross salary can have different pension deductions if they fall into different tiers. A Band 5 nurse at the top pay point crosses into a higher tier than one at the bottom, paying a larger percentage on their entire salary.
Since October 2022, part-time staff pay the tier rate based on their actual pensionable pay — not the whole-time equivalent. Use the calculator to see exactly how your pension tier affects your monthly take-home. It models Agenda for Change pay, so the figures are exact for AfC staff. On another NHS contract you can still use it — choose Custom and enter your own gross salary.
Beyond the NHS Pension
The NHS Pension is a strong foundation, but some staff choose to save more. If your employer offers salary sacrifice for additional pension contributions, both you and your employer save on National Insurance — our take-home and pension calculator can model this.
You can also contribute to a SIPP or other private pension alongside the NHS scheme, as long as your total pension growth stays within the Annual Allowance.