How much you will pay
The amount you pay towards your LGPS pension depends on how much you earn. You can find out how much you will pay in the contribution table below. The contribution table is set at a national level and updated every April.
Contribution bands 2026 to 2027
| Band | Your earnings | Contribution percentage |
|---|---|---|
| 1 | Up to £18,400 | 5.50% |
| 2 | £18,401 to £29,000 | 5.80% |
| 3 | £29,001 to £47,300 | 6.50% |
| 4 | £47,301 to £59,800 | 6.80% |
| 5 | £59,801 to £84,000 | 8.50% |
| 6 | £84,001 to £119,100 | 9.90% |
| 7 | £119,101 to £140,400 | 10.50% |
| 8 | £140,401 to £210,700 | 11.40% |
| 9 | £210,701 or more | 12.50% |
If your pay changes, the amount you pay may also change. Your employer is responsible for setting and reviewing contribution bands. If you have any queries about deductions from your pay, you should contact your employer in the first instance.
Paying less into your LGPS
The contribution table sets out how much you will pay in the main section of the Scheme to receive full LGPS pension benefits. If you want to reduce how much you’re paying towards your LGPS pension, you could choose to move to the 50/50 section.
In the 50/50 section, you pay half the normal pension contributions in return for half the normal pension benefits in the LGPS.
For more information, see how to pay less into your pension.
Tax relief on contributions
Your LGPS pension contributions are taken from your pay before tax, which means that if you are a taxpayer, you will benefit from tax relief.
For example:
- if you are a basic rate taxpayer for every £100 paid as an LGPS contribution, you will save £20 in tax
- if you are a higher rate taxpayer, you will save £40 in tax from your contribution
If you do not earn enough to pay tax, under new rules from the tax year 2024/25, you could be eligible for a top-up payment from HMRC. This payment will be equal to the amount of tax relief you would have received if you were a basic rate taxpayer. We expect HMRC to make the first of these payments in 2026.
Tax limits on pension contributions
Most people will be able to save as much as they want towards their LGPS pension without incurring a tax charge. However, the Government places some limits on the amount of tax relief you can receive from pension savings.
For more information, see tax controls and your LGPS pension.