Changes to NHS Pension Scheme Contributions

NHS pension changes

[Article updated 5 August 2024 to reflect NHS pension uplift.]

In April 2024 there was an uplift to the pension bandings for NHS schemes, reducing the number of bandings from 11 to only 6.

The below table shows the figures currently in place:

The employer pension contribution increased to 23.7% in England and Wales, 22.5% in Scotland and 23.2% in Northern Ireland.

It is important to note that overtime for part time staff is pensionable up to 37.5 hours per week, any hours over this full time pattern remains as non-pensionable.

Tax relief

Members of the NHS Pension Scheme are eligible for tax relief on their pension contributions up to a specific amount. This is because contributions are taken from pay before tax is taken off, therefore contributions reduce the amount of pay subject to tax.

The annual and lifetime allowances, which are restrictions imposed by HMRC, means that the tax relief available for pensions savings is subject to certain limits.

GP Solo form

For NHS organisations who engage a GP on a self employed contract for services arrangements, then a new GP Solo form is available from 1 April 2024 following the change in NHS Pension Scheme. You can read more about NHS Pension Scheme here.

This article was written by Price Bailey’s Payroll team. If you have a query regarding anything mentioned in this article, please contact a member of the Payroll team below.