News & Events
Payroll update for NHS staff – pension contribution calculations are changing from 1 October 2022
22nd September 2022
Payroll update for NHS staff – pension contribution calculations are changing from 1 October 2022
The Department of Health and Social Care (DHSC) announced changes to the NHS pension effective from 1 October 2022.
Your payroll provider should be aware of the changes but if you prepare the practice payroll in house, then these are the key changes to be planning for:
- The rate of pension contributions will be based on actual annual rate of pensionable pay, instead of whole time equivalent. Therefore, part time employees’ contribution rates may be reduced.
- No pension will be payable on overtime that exceeds full time equivalent hours.
- The pensionable pay tiers have changed
- These changes mean that members pension contributions may fluctuate each month.
*New tiers and rates from 1 October 2022
| Pensionable salary range – The new salary ranges from 1 October 2022 | Contribution rates from 1 October 2022, based on actual annual pensionable pay: | Future planned contribution rates based on actual annual pensionable pay: |
| Up to £13,246 | 5.1% | 5.2% |
| £13,247 to £16,831 | 5.7% | 6.5% |
| £16,832 to £22,878 | 6.1% | 6.5% |
| £22,879 to £23,948 | 6.8% | 6.5% |
| £23,949 to £28,223 | 7.7% | 8.3% |
| £28,224 to £29,179 | 8.8% | 8.3% |
| £29,180 to £43,805 | 9.8% | 9.8% |
| £43,806 to £49,245 | 10% | 10.7% |
| £49,246 to £56,163 | 11.6% | 10.7% |
| £56,164 to £72,030 | 12.5% | 12.5% |
| £72,031 and above | 13.5% | 12.5% |
*Source – https://www.nhsbsa.nhs.uk/member-hub/cost-being-scheme
NHSBSA have sent out a letter to practices recently, with more information, examples and details about the changes.
For any further assistance in calculating the impact on your staff, please contact the Rowleys medical payroll team. Rebecca Gotch Rebecca.gotch@rowleys.biz or Claire Farr claire@rowleys.biz or telephone 0116 2827000.