A part-time employee's contribution rate is based on their actual earnings for the year.
Part-time employees can work extra hours which will increase their earnings for the year up to their whole-time equivalent (WTE) pay. If the part-time employee is given any additional pay for working overtime, the enhanced part is not pensionable.
This can cause the employee to move into a different pensionable earnings band.
Changes to contributions tier ‘in-year’ will change the employee's contribution rate. Their new rate of contributions must be paid from the next payroll period following the change in pensionable pay.
If you have further queries about this, contact NHS Employers in England or NHS Confederation.
Part-time employees who worked additional hours up to their WTE pay
Some employees who have worked additional hours up to their WTE pay, may not have paid contributions on the additional hours.
The employees now have the option to pay the difference in pension contributions for the additional hours so it will be reflected in their final pension. This is called 'making an election'.
This applies to employees who are a member of the NHS Pension Scheme and who have:
- worked part-time since 1 April 2015
- worked additional hours between 1 April 2015 and 31 March 2024
- not paid pension contributions for the additional hours
You must provide the employee with a statement confirming their contributions and payment terms.
The employee has 3 months to make the election. If they do not want to make an election, no action is needed. The additional hours will remain non-pensionable.
Part-time employees who have taken partial retirement in the last 12 months
Any additional hours worked above the employee's contractual hours will not count towards pensionable pay during the 12-month period after partial retirement.
Bank staff or locum officer members
If you cannot estimate the expected annual pay to get a contribution rate for an employee with a bank post, you must use a rate of 6.5% when setting up the record.