An employee’s contribution rate is based on how much they are paid.
- Currently their contribution is between 5.5% and 12.5% of their pensionable pay.
- You need to set the correct employee contribution rate when the employment starts.
- You need to check the employee contribution rate again each April as a minimum and apply any changes.
- You should inform members in writing each time a change is made to their contribution rate.
Employee contribution bands 2025/26
Band | Actual pensionable pay for an employment | Main section contribution rate for that employment | 50/50 section contribution rate for that employment |
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1 | Up to £17,800 | 5.5% | 2.75% |
2 | £17,801 to £28,000 | 5.8% | 2.9% |
3 | £28,001 to £45,600 | 6.5% | 3.25% |
4 | £45,601 to £57,700 | 6.8% | 3.4% |
5 | £57,701 to £81,000 | 8.5% | 4.25% |
6 | £81,001 to £114,800 | 9.9% | 4.95% |
7 | £114,801 to £135,300 | 10.5% | 5.25% |
8 | £135,301 to £203,000 | 11.4% | 5.7% |
9 | £203,001 or more | 12.5% | 6.25% |
Employee contribution bands 2024/25
Band | Actual pensionable pay for an employment | Main section contribution rate for that employment | 50/50 section contribution rate for that employment |
---|
1 | Up to £17,600 | 5.5% | 2.75% |
2 | £17,601 to £27,600 | 5.8% | 2.9% |
3 | £27,601 to £44,900 | 6.5% | 3.25% |
4 | £44,901 to £56,800 | 6.8% | 3.4% |
5 | £56,801 to £79,700 | 8.5% | 4.25% |
6 | £79,701 to £112,900 | 9.9% | 4.95% |
7 | £112,901 to £133,100 | 10.5% | 5.25% |
8 | £133,101 to £199,700 | 11.4% | 5.7% |
9 | £199,701 or more | 12.5% | 6.25% |
If the employee’s pay changes in the year, you may choose to review their contribution rate again at that time.
If the employee has more than one job, you usually need to set their contribution rate separately for each job.
Casual employees
For casual employees who have no contractual hours of employment you should make a reasonable initial assessment:
- Of the number of hours the person is likely to work on an annual basis, taking account of the hours worked by the previous holder (if any) of the post, and subsequently review the band allocation at an appropriate time.
- To allocate the employee to the lowest band (5.5%) and review the band allocation at an appropriate time.
- To allocate the employee to the 6.5% band, on the basis that this is the average contribution rate for Scheme members and review the band allocation at an appropriate time.
Dealing with backpay
Sometimes a backdated pay rise or salary increase, may move an employee into a new contributions band. In this situation deduct employee contributions, on the back pay, at the new rate.
Your employer contribution rate remains the same.
50/50 Section
Employees can elect to move to the 50/50 section and pay half the contribution rate for half the benefits by completing the relevant application form. You will continue to pay the full contribution rate.
Your employer contribution rate remains the same.
Your employer contribution remains the same when employees move to the 50/50 section.
The new 50/50 employee contribution rate applies from the 1st pay period following the member election.
Each job is treated separately, and the employee would need to make a 50/50 election for each job.
50/50 is disregarded for death in service and ill health enhancements. Under these circumstances the member retains full benefits as if they were in the main section.
The employee must go back into the main section:
- If no pay due to sickness or injury.
- If no pay during ordinary maternity, paternity leave or adoption leave.
- At automatic enrolment date.
They can elect to go back into the 50/50 section from the next available pay period by completing the Election to opt into the LGPS 50/50 section form.