NHS Pension Scheme - employer contributions from April 2024
The NHS Pension Scheme is financed by payments from the employer and current members who pay contributions at different amounts depending on their pay.
Employer contributions and administration levy
The employer contribution rate from 1 April 2024 is 23.7 per cent of pensionable pay. This is an increase from the previous rate of 20.6 per cent, in place for the period 1 April 2019 to 31 March 2024.
The employer contribution rate is set through a process known as the scheme valuation. A scheme valuation is usually carried out every four years and it measures the full cost of paying pension benefits (to current pensioners). The most recent 2020 scheme valuation identified the need to increase the employer contribution from 1 April 2024.
Employers are required to pay a scheme administration levy, in addition to the employer contribution rate, to cover the cost of the scheme administration. This levy is 0.08 per cent of pensionable pay and will be collected at the same time and in the same way as normal employer contributions. In practical terms, this means employers will pay 23.78 per cent of pensionable pay.
Employers are responsible for paying 14.38 per cent of contributions, with the remaining 9.4 per cent being funded centrally.
The 2024 valuation will commence in 2025 and will determine the employer contribution rate for four years from 1 April 2027. We will update our website when the new rate is announced.
Member contributions
A contribution structure is in place to determine the percentage of pensionable pay that members are required to pay into the NHS Pension Scheme, based on their pensionable earnings. A new member contribution structure is in effect from 1 April 2024.
For more detailed information on member contributions, visit our dedicated web page.
