Procedures – New Members of the NHS Pension Scheme post April 6th 2022

The following applies to:

  • Normal Staff – paid for a single post –  Employee type 1
  • Doctor – Assistant/Retainer (Practice is pension provider) – Employee type 5

 

If an employee has been added to the NHS Pension Scheme post April 6thst 2022, the Employee Basic Contribution rate will be set as follows:

  1. The system will check the employees what the employee’s monthly salary is set to
  2. The system will multiply this figure by 12
  3. The figure in step 2 is checked against the new tiers and contribution rates
  4. The new Employee Basic Contribution rate will be set accordingly

 

Example

  1. New employee is set up and monthly salary is set to £2,000
  2. £2,000 * 12 = £24,000
  3. The amount of £24,000 is checked against the new tiers
TierPensionable Pay used to determine contribution rate £Contribution rate (%)
1£0.00 to £13,246.995.1%
2£13,247.00 to £16,831.99 5.7%
3£16,832.00 to £22,878.996.1%
4£22,879.00 to £23,948.996.8%
5£23,949.00 to £28,223.997.7%

 

  1. The Employee Basic Contribution rate is set to 7.7%

————————————————————————————————————————————————————————————————————————

  • Staff with more than one post –  Employee type 2

If an employee has been added to the NHS Pension Scheme post April 6thst 2022, the Employee Basic Contribution rate will be set as follows:

 

  1. The system will add together the salary for all posts
  2. This amount is multiplied by 12
  3. The figure in step 2 is checked against the new tiers and contribution rates
  4. The new Employee Basic Contribution rate will be set accordingly

 

Example

Employee is set up and has 2 posts

Post 1 – Salary = £500

Post 2 – Salary = £750

 

  1. The system will add together the two salary amounts (£500 + 750) = £1250
  2. This amount is multiplied by 12 (1250 * 12) = £15,000
  3. The amount of £15,000 is checked against the new tiers
TierPensionable Pay used to determine contribution rate £Contribution rate (%)
1£0.00 to £13,246.995.1%
2£13,247.00 to £16,831.99 5.7%

4. The Employee Basic Contribution rate is set to 7.7%

See how IRIS KashFlow works with your business and your books