A revised contribution structure for NHS pension members for 2025/26 has been published.
The changes alter the pensionable earnings bands that determine how much an individual pays into their retirement pot, bringing them in line with this year’s Agenda for Change (AfC)pay rise of 3.6%.
The updated pay thresholds apply retrospectively from 1 April 2025, affecting all except the lowest tier (see table below). The member contribution rates remain unchanged.
NHS pension rules were changed last year to ensure that pay thresholds are updated annually in order to protect levels of staff take home pay. The mechanism means pay increases don’t push individuals into a higher contribution rate, which would have the effect of cutting net earnings.
Under the regulations, the thresholds are automatically increased by whatever is higher of either the consumer prices index (CPI) or the AfC pay award in England.
The Department of Health and Social Care (DHSC) said in a report published last week that the CPI figure in September 2024 was 1.7%, a lower figure than the AfC pay rise for 2025/56 of 3.6%, therefore the thresholds will increase in line with pay for this year.
The lowest tier has been frozen to ensure the NHS pension scheme remains affordable to the lowest earners, the Government also said.
The updates have been consulted upon and agreed by the pension’s scheme advisory board, which consists of employer and trade union representatives.
Table: Changes to pensionable earnings bands for 2025/26
| Pensionable pay range from 1 April 2025 | Member contribution rates from 1 April 2025, based on actual annual pensionable pay |
| 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% |
Source: DHSC
