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Employer Knowledge Article

EPN743 - Member Contributions for the 2026/27 Scheme Year

Audience

This notice will be of interest to:

  • HR managers

  • Payroll managers

  • Pension leads

  • Communication managers / leads / business partners

  • Internal communication managers / business partners

Actions

  • Work with your payroll provider to ensure that the member contributions are applied in line with the updated salary thresholds shown in Table 1, from 1 April 2026.

  • You may wish to communicate these changes to your employees.

Timing

You should start working with your payroll provider now to prepare for the implementation of the new salary thresholds from 1 April 2026.

Summary

  • Cabinet Office completed a consultation with member representatives regarding member contributions from 1 April 2023.

  • As a result, two of the four salary thresholds -- those in the lower bands -- will increase from April 2026.

  • The increase will be in line with the Consumer Price Index (CPI) rate from the previous September.

  • The increase to the lower salary thresholds means some members may pay slightly less in contributions, however, please note they will not see a loss in pension because of this.

Detail

  1. In EPN676 we confirmed that the Cabinet Office had completed a consultation with member representatives in respect of member contributions from 1 April 2023.

  2. As a result, it was agreed that from April 2026 the lowest salary thresholds would be increased in line the rate of Consumer Price Index (CPI) CPI from the previous September.

  3. Please note that member contribution rates remain unchanged.

  4. Salary thresholds from 1 April 2026 are shown in the table below.

  5. Table 1: Member Pension Contribution Rates for 2026/2027

    Annualised rate of pensionable earningsMember/ Employee contribution rate
    FromTo  
    £0£36,199 (£34,799) 4.60%
    £36,200 (£34,800)£56,000 5.45%
    £56,001£150,000 7.35%
    £150,001- 8.05%

  6. The above contribution rates will apply until further notice.

  7. Employer contribution rates from 1 April 2024 were confirmed in EPN698 and will be effective until 1 April 2027.

Note: Where a salary threshold has increased for the 2026/27 scheme year, the 2025/26 threshold is shown in brackets for reference.