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NHS Pension Scheme employer contribution rates 2022/23

The NHS Pension Scheme employer contribution rate increased on 1 April 2019 from 14.3% to 20.6%, plus the employer levy of 0.08%.

In March 2019 the consultation response announcing the rise, the Department of Health and Social Care (DHSC) confirmed the available funding to meet the associated costs and that a transitional arrangement would operate in 2019/20.  This allowed employers in the Scheme to continue to pay 14.3%, plus the employer levy of 0.08%.

This approach continued in 2020/21 and 2021/22, and we can now confirm that the transitional arrangement will continue again in 2022/23. This is intended to maximise stability for employers in the sector, particularly in light of the pressure resulting from the coronavirus (COVID-19) pandemic.

Employers should carry on paying pension payments as normal

This means that for 2022/23, all employers should continue to pay 14.38% in employer contributions, including 0.08% for the employer levy, under their normal monthly payment process to the NHS Pension Scheme. NHS England and NHS Improvement will continue to make payments to the Scheme for organisations covered by their commitment to the NHS.

As referenced in the 2019 consultation response, the 6.3% increase was split into two parts:

  1. a 2.5% foreseen element, which was the increase expected at the time of Budget 2016, and
  2. an unforeseen element accounting for the remaining 3.8%.

If your organisation is outside the scope of the commitment to the NHS, you will receive funding for the unforeseen costs again in 2022/23. You will need to manage the impact of the foreseen element, in a continuation of the original 2019/20 arrangement.

For 2022/23, Arm’s Length Bodies (ALBs), excluding NHS England and NHS Improvement, will continue to receive the same available funding support as they have previously, and the funding and administrative arrangements will stay the same as in 2021/22.

We are currently writing to university medical schools to let them know that the specific contribution from university medical schools will remain as advised by the NHSBSA for 2019/2020.