2025/26 Employee Contribution Rates Published
As an active member of the Local Government Pension Scheme (LGPS), you will pay a set percentage of your pay towards your pension each month. The percentage you pay depends on how much you earn and is set out in the contribution table.
Each April, contributions rates are updated to keep up with the cost of living. The rates for the 2025/26 financial year have now been published and will apply from 1 April 2025. They are as follows:
| Band | Actual pensionable pay for an employment | Main section contribution rate for that employment | 50/50 section contribution rate for that employment |
|---|---|---|---|
| 1 | Up to £17,800 | 5.50% | 2.75% |
| 2 | £17,801 to £28,000 | 5.80% | 2.90% |
| 3 | £28,001 to £45,600 | 6.50% | 3.25% |
| 4 | £45,601 to £57,700 | 6.80% | 3.40% |
| 5 | £57,701 to £81,000 | 8.50% | 4.25% |
| 6 | £81,001 to £114,800 | 9.90% | 4.95% |
| 7 | £114,801 to £135,300 | 10.50% | 5.25% |
| 8 | £135,301 to £203,000 | 11.40% | 5.70% |
| 9 | £203,001 or more | 12.50% | 6.25% |
It is your employer’s responsibility to review your contributions according to the revised rates and inform you of any changes. If you have any queries, you should contact your employer in the first instance.
Paying more
If you want to save more towards your retirement, you can do so through either an APC (Additional Pension Contribution) or an AVC (Additional Voluntary Contribution). If you’re a taxpayer, you will receive tax relief on all contributions made directly from your salary. Take a look at our 'Increasing your pension benefits' webpage for more details.
Paying less
If you’re experiencing financial hardship and are perhaps thinking of opting out of the Scheme, consider moving to the 50/50 section instead. In the 50/50 section you will pay half the normal contributions in exchange for half the normal pension build up while still having access to all the benefits of being a Scheme member e.g., life cover and ill-health cover.
Employer contributions
Your employer pays generous contributions to fund the cost of paying your LGPS pension benefits to you. Every three years a review, known as a valuation, is conducted to make sure the employer is paying enough. The next valuation is due to take place as at 31 March 2025 and will determine your employer’s contributions for 1 April 2026 to 31 March 2029.
As the LGPS is a defined benefit pension scheme, your employer’s contributions are not used to work out what you receive at retirement. Instead, your pension is worked out according to your pensionable pay. You can find out more about this on our dedicated 'How your pension builds up' webpage.