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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 2024 to 2025

Band Your earnings Contribution percentage
1 Up to £17,600 5.50%
2 £17,601 to £27,600 5.80%
3 £27,601 to £44,900 6.50%
4 £44,901 to £56,800 6.80%
5 £56,801 to £79,700 8.50%
6 £79,701 to £112,900 9.90%
7 £112,901 to £133,100 10.50%
8 £133,101 to £199,700 11.40%
9 £199,701 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. But if you wanted 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 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 on your LGPS contributions.

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

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 limits on the amount of tax relief you can receive from pension savings.

For more information, see Tax and your LGPS pension