How much does it cost?
Overview
All members of the LGPS must pay contributions. How much you pay depends on how much you earn. If you earn enough, you’ll benefit from tax relief. Your employer also pays towards the cost of your LGPS pension.
How much do I need to pay?
Your employer will work out the contribution rate you pay based on your pensionable earnings. This could change during the year if your pay changes significantly. If you’ve more than one job, your employer should work out your contribution rate separately for each job. This could mean you pay a different contribution rate for each job.
If you choose to move to the 50/50 section of the LGPS, the contributions you pay will be half of those you’d pay if you were a member of the main section.
The Government reviews the contribution bandings every year.
The contribution rates for 2025/2026 are:
| Pensionable pay for a job | Main section | 50/50 section |
|---|---|---|
| Up to £17,800 | 5.50% | 2.75% |
| £17,801 to £28,000 | 5.80% | 2.90% |
| £28,001 to £45,600 | 6.50% | 3.25% |
| £45,601 to £57,700 | 6.80% | 3.40% |
| £57,701 to £81,000 | 8.50% | 4.25% |
| £81,001 to £114,800 | 9.90% | 4.95% |
| £114,801 to £135,300 | 10.50% | 5.25% |
| £135,301 to £203,000 | 11.40% | 5.70% |
| £203,001 or more | 12.50% | 6.25% |
The pension contributions calculator on the national LGPS member website can also work out your LGPS contributions for you.
