NHS Pen ion Scheme Change – Full Guide to 2024 & 2025 Update

The NHS Pension Scheme has seen a series of significant updates across 2024 and 2025, covering employer contribution rates, member tier thresholds, and the pension treatment of additional hours worked by part-time staff. These changes, documented by the NHS Business Services Authority (NHSBSA), NHS Employers, and the UK government, affect more than 1.8 million scheme members. Understanding what shifted, when, and for whom is essential for anyone employed by the NHS or involved in payroll administration.

What are the NHS Pension Scheme changes from April 2024 and April 2025?

Two separate sets of reforms took effect on 1 April 2024 and 1 April 2025. The 2024 change raised the employer contribution rate from 20.6% to 23.7% of pensionable pay for England-based employers, while the 2025 update lifted member contribution tier thresholds and clarified the pensionable status of additional hours for part-time staff. Together, they represent the most substantial adjustment to the scheme’s cost structure since 2019.

Key insights

• The 2024 and 2025 changes are separate but cumulative: employer costs rose in 2024, member thresholds and part-time rules adjusted in 2025.
• The 2025 part-time rule change allows part-time staff to work additional hours without triggering a separate pension contribution tier – previously, extra hours could push them into a higher rate.
• The employer contribution increase from 20.6% to 23.7% is the largest single jump in recent years, reflecting ongoing cost pressures on the NHS pension fund.
• CPI-linked tier threshold uplifts mean that members’ contribution rates will not automatically rise with inflation – the thresholds adjust to keep rates stable for real earnings growth.
• Despite the changes, the NHS Pension Scheme remains one of the most generous public sector pension schemes, with defined benefits and index-linked increases.

Snapshot of the key changes

How much will NHS employer pension contributions increase in 2024?

From 1 April 2024, the employer contribution rate for the NHS Pension Scheme in England rose from 20.6% to 23.7% of pensionable pay. The NHSBSA confirmed this increase applies across the board for employers participating in the scheme. In Northern Ireland’s HSC scheme, the equivalent rate moved to 23.2%, reflecting different administrative arrangements.

Why did the employer contribution increase?

The increase responds to the rising cost of funding the defined-benefit scheme. The NHS Pension Scheme is a pay-as-you-go system where current contributions fund current pensions, supplemented by a notional fund. The government’s actuarial valuation of the scheme triggered the adjustment to ensure long-term financial sustainability. No further employer rate changes have been announced for 2025 or 2026.

What are the updated NHS pension contribution tier thresholds from April 2025?

From 1 April 2025, the salary bands that determine which contribution rate a member pays were uplifted. The official GOV.UK report on the uplifts explains how the thresholds were calculated. The September 2024 CPI figure was 1.7%, but because the Agenda for Change pay award for 2025/26 was 3.6%, the “better of” approach meant the bands were raised by 3.6% instead of CPI.

How does the CPI uplift rule work?

Under scheme rules, the contribution tier thresholds are automatically indexed each year by the rate of CPI from the previous September. NHS Employers states that from 1 April each year, pensionable pay ranges increase by that CPI figure, and the Electronic Staff Record (ESR) is updated accordingly. However, when the relevant pay award exceeds CPI, the government applies the higher rate to prevent members from being pushed into higher contribution bands purely by salary inflation.

What are the 2025/26 contribution bands?

The NHSBSA’s table for 1 April 2025 shows the following bands and contribution rates:

• Up to £13,259 — 5.2% (lowest tier frozen, linked to personal allowance)
• £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%

The headline contribution percentages themselves did not change. Only the income thresholds at which each rate applies were adjusted upward.

Can NHS part-time staff increase their hours without affecting their pension?

Yes. From 1 April 2025, the rules were clarified so that additional hours worked by part-time NHS staff, up to the whole-time equivalent (WTE) of 37.5 hours per week, are automatically pensionable. This change resolves a longstanding ambiguity and ensures that part-time workers are not penalised for taking on extra shifts.

What is the maximum additional hours a part-time worker can now work?

The policy allows part-time staff to work additional hours up to 37.5 hours per week without those hours being treated separately. Hours worked above 37.5 per week remain non-pensionable, according to the GOV.UK consultation text. The change applies to all NHS employers in England and Wales, with the Department of Health and Social Care extending the employer notification deadline for affected part-time members from 1 October 2025 to 1 January 2026.

Retrospective application

Weightmans and Bevan Brittan both report that the April 2025 regulations applied this treatment retrospectively. Bevan Brittan states the affected period is 1 April 2015 to 31 March 2024. Employers must review their records and notify the scheme of any additional hours worked during that window that should now be counted as pensionable.

How do I calculate my NHS pension contributions?

Your contribution is determined by your pensionable pay falling into one of the six tiers. For the 2025/26 tax year, the bands are those listed above. To estimate your contribution, identify which salary band applies to your annual pensionable pay and multiply your pay by the corresponding percentage.

Is there an official calculator?

The NHSBSA provides an official pension contribution calculator on its website. You enter your pensionable pay and the relevant tax year, and the tool returns your estimated member contribution. It also accounts for any employer contribution for context. The calculator is updated each April when new thresholds take effect.

For more context on how government-backed financial products work alongside public sector benefits, you may find the article on NS&I British Savings Bonds Relaunch – Rates Up to 4.50% AER useful.

How do I access my NHS pension online?

The My NHS Pension portal allows members to view their pension record, estimate benefits, update personal details, and track contributions. Registration requires your NHS Pension membership number, National Insurance number, and some personal details. The service is managed by the NHSBSA and can be accessed via its pensions homepage.

For further guidance on managing personal finances alongside public sector benefits, the John Lewis Credit Card – Login Rewards and Benefits Guide offers related insights.

When did these NHS Pension Scheme changes take effect?

1. 1 April 2024 — Employer pension contribution rate increased from 20.6% to 23.7% of pensionable pay.
2. 1 April 2025 — Member contribution tier thresholds uplifted in line with the 2025/26 Agenda for Change pay award (3.6%), replacing the standard CPI uplift of 1.7%.
3. 1 April 2025 — Part-time staff allowed to work additional hours up to 37.5 hrs/week without separate pension treatment; change applied retrospectively to 1 April 2015.
4. 10 July 2025 — GOV.UK published the official report on the uplifts to member contribution tier thresholds.
5. Extended to 1 January 2026 — Employer notification deadline for affected part-time members (originally 1 October 2025).
6. Ongoing — NHS Pensions continues to update the online calculator and My NHS Pension portal.

What is confirmed and what remains unclear about the NHS Pension changes?

Why are these NHS Pension Scheme changes happening now?

The NHS Pension Scheme is a defined benefit scheme covering over 1.8 million members. Contribution rates are tiered based on pensionable pay, and the scheme is funded by member contributions, employer contributions, and government funding. The 2024 employer increase is the first significant rise in employer contributions since 2019. The tier threshold uplifts ensure that inflation does not push members into higher contribution brackets automatically, protecting real incomes. The part-time additional hours rule addresses workforce flexibility, particularly important given ongoing NHS staffing shortages. These changes form part of a broader public sector pension reform environment where the government aims to balance scheme sustainability with workforce incentives.

Where can I find official information about NHS Pension changes?

The primary sources for official information are the NHSBSA website, NHS Employers, and the GOV.UK publications portal. Each provides documentation at different levels of detail.

“From 1 April 2024, the amount employers pay towards members’ pensions will go up from 20.6% to 23.7% of pensionable pay.”

— NHSBSA

“The salary thresholds used to determine a member’s contribution rate have been uplifted from 1 April 2025 in line with the Consumer Prices Index (CPI).”

— NHS Employers

“The change from April 2025 will formally allow additional hours worked by part-time staff, up to the whole-time equivalent of 37.5 hours per week, to be…”

— Weightmans (legal commentary)

The NHSBSA member hub provides the most up-to-date contribution tables, while Weightmans’ legal analysis offers detail on the retrospective application of the part-time rule.

What do the NHS Pension Scheme changes mean for members?

The 2024 and 2025 changes together mean higher employer costs, protected member contribution rates through threshold uplifts, and greater flexibility for part-time staff. Members should use the official NHSBSA calculator to model their contributions under the new thresholds, and part-time staff should discuss with their employer how the additional hours rule applies to their specific contract. No further changes have been announced for 2026, but the CPI uplifts may continue annually.

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