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Your pension contributions
As a member of the Local Government Pension Scheme (LGPS), your pension contributions come out of your gross salary before any tax is taken off. The amount of contributions you pay is a percentage of your gross salary. Your percentage depends on the annual salary you earn.
When you first become a member, your employer will automatically take full rate contributions from you. This means that you will be in the main section of LGPS. You will build up pension at full rate, and you will have death in service and ill health cover.
You also have the option to temporarily pay half rate pension contributions. This is called the 50:50 section of LGPS. You will build up pension at half rate, but you will still have the same death in service and ill health cover as a member who pays full rate contributions in the main section.
The contribution rates for 1st April 2025 to 31st March 2026 for both main and 50:50 sections are:
| Your actual gross salary | Contribution rate for the main section | Contribution rate for the 50:50 section |
|---|---|---|
| Up to £17,800 | 5.50% | 2.75% |
| £17,801 to £28,000 | 5.80% | 2.90% |
| £28,001 to £45,600 | 6.50% | 3.25% |
| £45,601 to £57,700 | 6.80% | 3.40% |
| £57,701 to £81,000 | 8.50% | 4.25% |
| £81,001 to £114,800 | 9.90% | 4.95% |
| £114,801 to £135,300 | 10.50% | 5.25% |
| £135,301 to £203,000 | 11.40% | 5.70% |
| More than £203,001 | 12.50% | 6.25% |
By clicking the link below, you can work out what contributions you will pay by entering:
- your annual pensionable salary
- your pay frequency; and
- whether you are in the main or 50:50 section.
The example below shows the difference in how your pension will build up in the main or 50:50 section of LGPS. This example is based on an annual wage of £24,000.
| Main Section | 50:50 Section | |
|---|---|---|
| Gross annual contribution | £1,392 (5.80%) | £696 (2.90%) |
| Annual pension build up | £489.80 (1/49th) | £244.90 (1/98th) |
| Death in service cover | £72,000 (3 x £24,000) | £72,000 (3 x £24,000) |
As well as your contribution, your employer also contributes to make sure there is enough money at the time you retire to pay your pension.
Every three years, our Actuary works out what your employer’s contribution percentage should be.