In July 2025, the Government approved changes to NHS Pension bands. These changes apply retrospectively from 1 April 2025. The contribution rates remain the same for each tier. However, the thresholds on each tier have increased. If you'd like to view the bands, use the options below. - ▼ Old thresholds effective before the July 2025 changes
| Tier | Applicable from | Applicable to | Employee contribution rate | | 1 | £0.01 | £13,259.99 | 5.2% | | 2 | £13,260.00 | £27,288.99 | 6.5% | | 3 | £27,289.00 | £33,247.99 | 8.3% | | 4 | £33,248.00 | £49,913.99 | 9.8% | | 5 | £49,914.00 | £63,994.99 | 10.7% | | 6 | £63,995.00 | and over | 12.5% | - ▼ New thresholds applied by July 2025 changes
| Tier | Applicable from | Applicable to | Employee contribution rate | | 1 | £0.01 | £13,259.99 | 5.2% | | 2 | £13,260.00 | £27,797.99 | 6.5% | | 3 | £27,798.00 | £33,868.99 | 8.3% | | 4 | £33,869.00 | £50,845.99 | 9.8% | | 5 | £50,846.00 | £65,190.99 | 10.7% | | 6 | £65,191.00 | and over | 12.5% |
How do the changes affect employees? Because the bands have increased retrospectively, your employees may have overpaid contributions. ▼ View an example. If an employee's annualised pay was £27,500 in April 2025, their salary fell in band three before the uplift to the bands. Their contributions were 8.3% in this band. On the new bands, this salary falls into band two. The contributions for this band are 6.5%, meaning the employee overpaid by 1.8%.
What do I need to do? Check your employees' contributions for pay runs from 1 April to date. If you find that you processed any employees on a band that's no longer correct, you must correct it. For help with doing this, follow the check if the July 2025 NHS pension tier changes affect your employees article.
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