Solution Properties
Solution ID:
250305082922037
Last Modified Date:
Thu Feb 26 16:02:56 UTC 2026
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
How to enter new NHS Pension legislation
Description

For employees on an NHS Pension scheme, their contribution rate depends on which tier their salary fits in. If you use the NHS Pensions module, your software helps you assess employees' tiers.

The NHS Pension thresholds are changing from 1 April 2026. Sage 50 Payroll v32 doesn't include these changes, as they weren't available before we released the update.

Follow the steps below to add the new legislation, ready for when you process a payroll dated 1 April or after.

Cause
Resolution

Your software allows you to enter new NHS Pension legislation that's effective from a future date.

This lets you add the 1 April changes without affecting the periods you process before the changes take effect.

New legislation values

The table below includes the updated legislation. The contribution rates remain the same as 2025, but the threshold values are changing.

Tier Band From Band To Employee Contribution
1 £0.01 £13,259.99 5.2%
2 £13,260.00 £28,854.99 6.5%
3 £28,855.00 £35,155.99 8.3%
4 £35,156.00 £52,778.99 9.8%
5 £52,779.00 £67,668.99 10.7%
6 £67,669.00 Excess 12.5%

 

Enter the new legislation

Follow the steps below to add the 1 April 2026 NHS Pension legislation above to your software:

  1. If you haven't already installed Sage 50 Payroll v32, install it now.
  2. Select Payroll, then Change Process Date.
  3. Set the process date to 01/04/2026 then select OK.
  4. Go to Company, then Legislation.
  5. Go to the NHS Pensions tab.
  6. Set the Effective from dropdown to 01/04/2026.
  7. Enter the relevant Band To values and check the rates are correct. Your software adds the Band From values automatically.

    NOTE:

    Check that you've entered these correctly, as a mistake here could cause your software to recommend incorrect tiers.

  8. Select Edit Date.
  9. Ensure the date is 01/04/2026 and select OK.
  10. Select OK.

You've entered the new legislation to your software. However, this only takes effect when you:

  • Process a payroll with a process date of 01/04/2026 or after, and
  • Select Payroll then NHS Pension Tiers during that pay run to assess your employees

This refreshes the calculations based on the new legislation values you entered.

 

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