Employee contributions

The appropriate contribution rate is to be determined by the employer estimating the annual equivalent of the actual (not full time equivalent) pay to be received in a full scheme year (1 April to 31 March) rounded down to the nearest whole pound. This can be done in a number of ways for example:

• The annual rate of contractual pay
• The annual rate of contractual pay plus an estimation of non-contractual overtime or hours worked in excess of the contractual which might be worked in a full year
• The hourly contractual rate multiplied by an estimate of the number of hours to be worked in a full year
• The weekly contractual rate multiplied by 52.143
• The weekly contractual rate multiplied by 52.143 plus an estimate of other pensionable payments to be made in a full year

It is the responsibility of the Scheme employer to assess the appropriate rate for each of their employees and for each post that their employees may hold in a reasonable and consistent manner.

The employer must also notify their scheme members of any revision to their employee contribution rate. To assist employers we have provided a template letter which can be used for this purpose:

Example 1

A full-time member's actual annual pensionable pay is £24,000.

Their contribution rate in this instance would be 5.80% (based on the contribution bandings table for 2025/2026).

Example 2

A part-time member's actual annual pensionable pay is £12,500.

Their contribution rate in this instance would be 5.50% (based on the contribution bandings table for 2025/2026).