NHS Pension Explained 2026/27
The NHS Pension Scheme (2015 CARE) is one of the most valuable workplace pensions in the UK. Here is how contributions, employer top-ups, revaluation and tax interact — using the exact rates built into our NHS salary calculator.
How the 2015 CARE scheme works
CARE stands for Career Average Revalued Earnings. Each year you build up a pension based on your pensionable pay that year, and that accrual is revalued annually.
- Accrual: 1/54th of your pensionable pay each year.
- Revaluation: your accrued pension rises each year by CPI + 1.5%.
- Retirement age: your State Pension age (early retirement from 55, reduced; 57 from 2028).
- Tax relief: contributions are deducted before tax (Net Pay Arrangement), so a higher tier lowers both take-home pay and Income Tax.
Member contribution tiers 2026/27
Tiers are based on total pensionable pay. Our calculator selects the correct tier from your Band and pay step automatically. The thresholds below follow the official NHS Pension Scheme guidance on GOV.UK.
| Tier | Pensionable pay (whole pounds) | Member rate |
|---|---|---|
| 1 | £0 – £13,259 | 5.2% |
| 2 | £13,260 – £28,854 | 6.5% |
| 3 | £28,855 – £35,155 | 8.3% |
| 4 | £35,156 – £52,778 | 9.8% |
| 5 | £52,779 – £67,668 | 10.7% |
| 6 | £67,669 and above | 12.5% |
Employer contribution: 23.7% of pensionable pay (not taxable).
Pensionable pay: what counts
Most of your pay counts, including London weighting and many allowances. A few items (e.g. certain one-off payments) may be excluded — check your pension savings statement for the exact figure.
Tax and the £60k / £100k limits
Because NHS contributions use Net Pay Arrangement, they reduce your adjusted net income. That helps if you are near the High Income Child Benefit Charge (£60k–£80k) or the personal allowance taper (£100k–£125k).
See your own numbers
Use the NHS salary calculator to see your exact tier, employer top-up and take-home based on your Band, step and London weighting.
Open NHS Salary CalculatorNHS vs Teacher employer pension — shareable data card
We built a citation-ready comparison of NHS (23.7%) and Teachers' (28.68%) employer contributions for 2026/27 — useful if you write about public-sector pay. Free to embed with a source link.
View the data card →Frequently asked questions
What NHS pension contribution tier am I in for 2026/27?
Tiers are based on your total pensionable pay (basic salary plus most allowances). For 2026/27 they run from 5.2% to 12.5% across six tiers. Our NHS calculator looks up your tier automatically from your Agenda for Change pay point.
Does the NHS employer contribution count as taxable income?
No. The employer contribution (23.7%) is paid into your pension pot but is not part of your taxable pay, so it does not increase your Income Tax or National Insurance.
When can I take my NHS pension?
Under the 2015 scheme your normal pension age is your State Pension age. You can take a reduced pension from age 55 (rising to 57 from 2028), and the annual pension is revalued each year in line with CPI plus 1.5%.