When you work for the NHS, part of your salary automatically goes into your NHS Pension Scheme — one of the most generous public sector pensions in the UK.
But how much exactly is deducted from your pay every month?
This article breaks down NHS pension contribution rates, take-home pay examples, and how much you actually pay based on your band and salary.
NHS Pension Contribution Rates 2025/26
The NHS Pension Scheme is tiered, meaning the more you earn, the higher the contribution percentage.
| Pensionable Pay Range (£) | Employee Contribution Rate |
|---|---|
| Up to £13,248 | 5.1% |
| £13,249 – £26,496 | 6.1% |
| £26,497 – £31,784 | 8.3% |
| £31,785 – £47,845 | 9.8% |
| £47,846 – £71,365 | 10.0% |
| £71,366 – £124,620 | 11.6% |
| £124,621 and above | 12.5% |
Employers also contribute 20.6% on top of your salary — but that part doesn’t come from your pay packet.
Example: Pension Deduction by NHS Band
| Band | Typical Salary (£) | Pension Rate | Yearly Deduction (£) | Monthly Deduction (£) |
|---|---|---|---|---|
| Band 2 | 22,383 | 6.1% | 1,365 | 113 |
| Band 4 | 28,407 | 8.3% | 2,358 | 197 |
| Band 6 | 35,392 | 9.8% | 3,469 | 289 |
| Band 7 | 43,742 | 9.8% | 4,283 | 357 |
| Band 8a | 50,952 | 10.0% | 5,095 | 424 |
| Band 9 | 114,949 | 11.6% | 13,333 | 1,111 |
(Estimates before tax relief; actual figures vary by hours and region.)
How Pension Affects Take-Home Pay
Your pension contribution is deducted before tax, which means:
- You pay less income tax overall
- You still build pension benefits for your future
- Your net pay reduction is less than the raw contribution amount
Example:
If a Band 6 nurse earns £35,392, their 9.8% pension (£3,469) reduces taxable pay to ~£31,900, saving around £700 in tax each year.
Pension Scheme Tiers
| Scheme | Age for Benefits | Based On | Accrual Rate |
|---|---|---|---|
| 1995 Section | 60 | Final Salary | 1/80th |
| 2008 Section | 65 | Final Salary | 1/60th |
| 2015 Scheme | State Pension Age | Career Average (CARE) | 1/54th |
Most current NHS staff are in the 2015 CARE Scheme.
Example: Real-World Scenario
Sophie, a Band 6 nurse in Manchester:
- Gross Salary: £35,392
- Pension Deduction: £3,469
- Tax & NI: £5,900
- Take-Home Pay: ~£26,000 per year
- Employer Pension: +£7,300 (added separately)
So, while Sophie contributes ~10%, her employer contributes twice that, making it a valuable long-term benefit.
Key Takeaways
- NHS pension rates range from 5.1% to 12.5% of gross salary
- Deductions are tax-efficient (reduce taxable income)
- The employer adds 20.6%, at no cost to you
- The scheme offers a secure, inflation-linked income in retirement