Changes to member contribution tiers

The Department for Education recently held a consultation on proposed amendments to the Teachers’ Pension Scheme regulations. This included suggested changes to the member contribution rates to ensure the Scheme remains appropriately funded and that members continue to pay an average of 9.6% overall. You can read more about the consultation and the funding on our website.

Following the end of the consultation, the Department for Education have reviewed the results, and you can read the final report on the Gov.uk website (This link opens in a new window). The regulations have now been finalised, and the member contribution rates will be amended from 1 April 2025 to the following: 

 
Annual Salary Rate for the Eligible Employment from 1 April 2024  Current member contribution Rate Annual Salary Rate for the Eligible Employment from 1 April 2025 Member contribution Rate from 1 April 2025
Up to £34,289.99  7.4%
  Up to £34,872.99  7.4%
£34,290.00 to £46,158.99 8.6%
  £34,873.00 to £46,943.99  8.9%
£46,159.00 to £54,729.99 9.6%
  £46,944.00 to £55,660.99  9.9%
£54,730.00 to £72,534.99 10.2%
  £55,661.00 to £73,768.99  10.5%
£72,535.00 to £98,908.99 11.3%
  £73,769.00 to £100,590.99  11.6%
£98,909.00 and above 11.7%
  £100,591 and above  12%
  • Members in the first band (7.4%) won’t see any change in their contribution rate
  • Those in the remaining bands will see an increase of 0.3% to their contribution rate
  • All bands will increase by 1.7% due to the Pensions Increase from April 2025 (as shown in the table above).
The Department for Education has analysed the impact on take-home pay for an average member, taking account of tax relief on contributions. You can see an example of how this will work in effect below:
Example salary Net effect (Annual) Net effect (Monthly)
£30,000 £0 £0
£40,000 £96 £8
£50,000 £120 £10
£65,000 £117 £10
£85,000 £153 £13
£110,000 £198 £17
    Last Updated: 13/03/2025 12:33