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:
- The system will check the employees what the employee’s monthly salary is set to
- The system will multiply this figure by 12
- The figure in step 2 is checked against the new tiers and contribution rates
- The new Employee Basic Contribution rate will be set accordingly
Example
- New employee is set up and monthly salary is set to £2,000
- £2,000 * 12 = £24,000
- The amount of £24,000 is checked against the new tiers
Tier | Pensionable Pay used to determine contribution rate £ | Contribution rate (%) |
1 | £0.00 to £13,246.99 | 5.1% |
2 | £13,247.00 to £16,831.99 | 5.7% |
3 | £16,832.00 to £22,878.99 | 6.1% |
4 | £22,879.00 to £23,948.99 | 6.8% |
5 | £23,949.00 to £28,223.99 | 7.7% |
- The Employee Basic Contribution rate is set to 7.7%
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- 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:
- The system will add together the salary for all posts
- This amount is multiplied by 12
- The figure in step 2 is checked against the new tiers and contribution rates
- 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
- The system will add together the two salary amounts (£500 + 750) = £1250
- This amount is multiplied by 12 (1250 * 12) = £15,000
- The amount of £15,000 is checked against the new tiers
Tier | Pensionable Pay used to determine contribution rate £ | Contribution rate (%) |
1 | £0.00 to £13,246.99 | 5.1% |
2 | £13,247.00 to £16,831.99 | 5.7% |
4. The Employee Basic Contribution rate is set to 7.7%