NHS Pension Scheme explained

Anyone building up NHS pension in England or Wales today is in the 2015 Scheme, a career average defined benefit section. From 1 April 2026 you pay between 5.2 per cent and 12.5 per cent of your pensionable pay, depending on what you earn, and the NHS adds 23.7 per cent. You get a pension for life that follows the scheme rules and rises with inflation, plus cover if you die or become too ill to work.

The sections of the scheme

The NHS Pension Scheme has three sections. The 1995 and 2008 sections are the older ones, and both are closed to new pension build-up. Every active member is now in the 2015 Scheme.

Many longer-serving staff have pension in more than one section. Someone who joined years ago might have final salary benefits in the 1995 section and career average benefits in the 2015 Scheme. Each part is paid under its own rules and from its own pension age. The McCloud remedy also moved some service back into the legacy sections, with a choice at retirement.

Scotland and Northern Ireland have their own NHS and HSC pension schemes. The tiers and rates on this page are for England and Wales.

How the 2015 Scheme builds your pension

Every scheme year you earn pension equal to a set fraction of that year’s pensionable pay. The NHS Business Services Authority (NHSBSA), which runs the scheme, publishes the accrual rate. Each year’s pension is revalued every April while you stay in NHS employment, at a rate linked to inflation with an extra amount on top. After you leave, it keeps pace with prices.

Your normal pension age in the 2015 Scheme matches your State Pension age. You can take it earlier with a reduction for early payment, or later with an increase.

You can also take pension while still working. Partial retirement lets you draw some of your pension, reduce your hours or responsibility, and keep building pension on the hours you still work. Retire and return lets you take your pension and come back to an NHS job. NHSBSA sets conditions for both, and the early retirement guide goes through the reductions.

Contribution tiers from 1 April 2026

The tier depends on your actual annual pensionable pay, and the rate applies to the whole of that pay.

Actual pensionable pay	Member rate
Up to £13,259	5.2%
£13,260 to £28,854	6.5%
£28,855 to £35,155	8.3%
£35,156 to £52,778	9.8%
£52,779 to £67,668	10.7%
£67,669 and above	12.5%

Take the Agenda for Change pay bands for 2026/27. A full-time band 3 worker starting on £25,760 pays 6.5 per cent, which is £1,674.40 a year. A band 5 nurse at the entry point of £32,073 pays 8.3 per cent, or £2,662.06. A band 6 on £39,959 pays 9.8 per cent, £3,915.98. At band 8a entry, £57,528, the rate is 10.7 per cent and the annual cost is £6,155.50.

The rate jumps at each threshold, so a small pay rise that takes you over one costs a little more in pension contributions than you might expect. You still keep most of the rise, and the higher contribution buys more pension.

Contributions come off before Income Tax, so relief is automatic at your highest rate. They do not reduce National Insurance. For the band 5 nurse above, the £2,662.06 contribution costs about £2,130 in take-home pay for a basic rate taxpayer. The pension tax relief guide explains how this works, and the take-home pay calculator shows the monthly figure.

What the employer pays

The total employer contribution for 2026/27 is 23.7 per cent of pensionable pay. Your employer pays 14.38 per cent directly, and NHS England pays the remaining 9.4 per cent centrally on its behalf. For the band 5 nurse on £32,073, the employer side comes to £7,601.30 a year.

The NHS scheme is unfunded, like the teachers’ and Civil Service schemes. No investment pot exists that could lose value, and benefits are paid from public money under the scheme rules.

Pensionable pay, overtime and part-time hours

Basic salary is pensionable. Some allowances and enhancements are and some are not, and the rules differ between staff groups. Your payslip shows which pay elements had pension deducted.

Part-time staff who work extra hours up to the full-time standard usually have those hours treated as pensionable. Overtime worked by full-time staff above their contracted hours generally is not. The part-time pensions guide covers how your tier is worked out if your hours change.

Death, ill health and family benefits

If you die while in NHS employment, the scheme pays a lump sum and can pay pensions to a partner and eligible children. You can nominate who receives the lump sum. Unmarried partners need to meet the scheme’s conditions to get a partner’s pension, so check your nomination is up to date.

If you become permanently unable to do your NHS job, you can apply for ill-health retirement. There are two tiers, with a higher pension for people who cannot do any regular work. The ill-health retirement guide sets out how they are assessed.

Checking what you have built up

NHS staff in England and Wales on the ESR payroll system can see a Total Reward Statement, which includes a pension benefit estimate. The NHSBSA also has an online member service. Check each year that your service and pay look right, especially if you have moved trust or worked for more than one NHS employer at once. Errors are corrected through the employer that submitted the data, so start with your payroll or pensions team.