Pensions

2026/27 Employee Contribution Rates Published

If you’re an active member of the Local Government Pension Scheme (LGPS), the monthly pension contribution you pay depends on how much you earn.

Each April, employee contribution rates are updated to keep up with the cost of living. The rates for the 2026/27 Scheme year will apply from 1 April 2026 and 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
£18,400
5.50% 2.75%
2 £18,401
to £29,000
5.80% 2.90%
3 £29,001
to £47,300
6.50% 3.25%
4 £47,301
to £59,800
6.80% 3.40%
5 £59,801
to £84,000
8.50% 4.25%
6 £84,001
to £119,100
9.90% 4.95%
7 £119,101
to £140,400
10.50% 5.25%
8 £140,401
to £210,700
11.40% 5.70%
9 £210,701
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 UK taxpayer, you will receive tax relief on all contributions made directly from your salary. See increasing your pension benefits for more details.

Paying less

If you’re experiencing financial hardship and are perhaps thinking of opting out of the Scheme, or you simply want to pay less into your pension each month, consider moving to the 50/50 section. In the 50/50 section you’ll 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 (for example 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 your employer is paying enough. The latest valuation took place as at 31 March 2025 and determined 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. See how your pension builds up for more information.