Your contribution rate depends on your actual pensionable pay. The rates are between 5.5% and 12.5% of your pay. You pay contributions on each contract of employment you have.
Who decides your pay band and rate
Your employer determines which pay band you fall in. The pay band determines the contribution rate that you pay. Your employer should tell you what your rate is.
You must contact your employer if you disagree with them. If you are still dissatisfied, you have the right of appeal under the Internal Dispute Resolution Procedure (IDRP). Find out about the IDRP
The pay bands and contribution rates are determined by the government and are set in the regulations. This is not your employer’s decision.
You should check your payslip to make sure that pension contributions are being deducted.
Pay bands and contribution rates
The pay band ranges are increased each April in line with the cost of living.
From 1 April 2024 the pay bands and rates that apply are:
| Actual annual pensionable pay for an employment | Main Section | 50/50 Section |
|---|---|---|
| Up to £17,600 | 5.5% | 2.75% |
| £17,601 to £27,600 | 5.8% | 2.90% |
| £27,601 to £44,900 | 6.5% | 3.25% |
| £44,901 to £56,800 | 6.8% | 3.40% |
| £56,801 to £79,700 | 8.5% | 4.25% |
| £79,701 to £112,900 | 9.9% | 4.95% |
| £112,901 to £133,100 | 10.5% | 5.25% |
| £133,101 to £199,700 | 11.4% | 5.70% |
| £199,701 or more | 12.5% | 6.25% |
The LGPS has a contributions calculator. Enter your pensionable pay to find out your:
- contribution band, and
- full rate of contributions payable in the Main Section, or
- full rate of contributions payable in the 50/50 Section.
Use the LGPS contributions calculator
Example
Someone who works full time and is paid £20,000 each year pays a contribution rate of:
- 5.8% in the Main Section, or
- 2.9% in the 50/50 Section.
50/50 section
The 50/50 section of the scheme is intended as a short term measure in times of financial hardship. You pay in half your pension contributions and build up half your pension. You can opt to move into the 50/50 section. Find out about the 50/50 Section
Tax relief
You receive tax relief on your pension contributions. This means your income tax is calculated after pension contributions are deducted from your pay.
Pensionable pay
You pay contributions on your pensionable pay, which is normal salary or wages plus other pensionable extras. Find out what you pay contributions on
What your employer pays
Your employer pays contributions on your behalf. Find out what your employer pays
What your employer pays does not impact the calculation of your pension. We calculate your pension using factors set out in law.
Calculating your pension benefits
Payment of benefits to scheme members are guaranteed by law. Contributions are not used to calculate your pension. Your pension is calculated using your pensionable pay and formulas set out in regulations. Find out how your pension benefits are calculated
Increasing pension benefits
You are unable to backdate contributions but there are other options for increasing benefits. Find out about increasing benefits