HSC (Health & Social Care) pension thresholds
Pension Scheme (Northern Ireland only)
The DoH have acknowledged that as an agreement has not yet been met in implementing the 2023/24 AFC Pay award, they are not in a position to have the new employee pension tiers in place from 1 April 2024 as they will include the uplift for the 2023/24 Agenda for Change (AFC) pay award in addition to an uplift for CPI from 01/04/2024 moving forward.
The DoH have however confirmed that their plan is still to implement the reduced tiers from 01/04/2024, but the legislation will be made later in the year 2024/25 with retrospective effect.
The DoH have also acknowledged that they are conscious that for administrative purposes it would be much easier, for GP Practices in particular, to be calculating contributions from the updated figures from 1 April 2024.
Contribution Structure following 2022/23 AFC Pay Award applicable for year 2022/23
| Tier |
Pensionable earnings (based on actual salary) |
Contribution rate (before tax relief) (gross) |
|---|---|---|
| 1 | Up to £13,246 | 5.1% |
| 2 | £13,247 to £16,831 | 5.7% |
| 3 | £16,832 to £22,878 | 6.1% |
| 4 | £22,879 to £23,948 | 6.8% |
| 5 | £23,949 to £28,223 | 7.7% |
| 6 | £28,224 to £29,179 | 8.8% |
| 7 | £29,180 to £43,805 | 9.8% |
| 8 | £43,806 to £49,245 | 10.0% |
| 9 | £49,246 to £56,163 | 11.6% |
| 10 | £56,164 to £72,030 | 12.5% |
| 11 | £72,031 and above | 13.5% |
Contribution Structure following 2023/24 AFC Pay Award – applicable for year 2023/24
| Tier |
Pensionable earnings (based on actual salary) |
Contribution rate (before tax relief) (gross) |
|---|---|---|
| 1 | Up to £13,246 | 5.1% |
| 2 | £13,247 to £17,673 | 5.7% |
| 3 | £17,674 to £24,022 | 6.1% |
| 4 | £24,023 to £25,146 | 6.8% |
| 5 | £25,147 to £29,635 | 7.7% |
| 6 | £29,636 to £30,638 | 8.8% |
| 7 | £30,639 to £45,996 | 9.8% |
| 8 | £45,997 to £51,708 | 10.0% |
| 9 | £51,709 to £58,972 | 11.6% |
| 10 | £58,973 to £75,632 | 12.5% |
| 11 | £75,633 and above | 13.5% |
Contribution Structure following 2023/24 AFC Pay Award – applicable for year 2023/24
|
Tier |
Pensionable earnings (based on actual salary) |
Contribution rate (before tax relief) (gross) |
|---|---|---|
| 1 | Up to £13,259 | 5.2% |
| 2 | £13,260 to £26,831 | 6.5% |
| 3 | £26,832 to £32,691 | 8.3% |
| 4 | £32,692 to £49,078 | 9.8% |
| 5 | £49,079 to £62,924 | 10.7% |
| 6 | £62,925 and above | 12.5% |
It is important to note, that whilst it is most unlikely that any change will take place, these figures will not be finalised until the legislation is in place. You may therefore have to amend any revisions you have made to your payroll, if the pay award is amended from what is expected.
As previously mentioned in the DoH Consultation for the new HSC Pension Scheme contribution rates, the employer contributions will move to 23.2% from 01/04/2024. This increase of 0.7% is liable and due from 01/04/2024, and will be reflected in the new GP1 from April 2024. Any queries relating to the Funding of the additional 0.7% should be directed to the Strategic Planning and Performance group (SPPG)