You pay contributions towards the cost of your pension benefits. These are set as a percentage of your ‘pensionable pay’ and the rates in respect of 2020/21 are shown below.
|Your Pay Band||Your Contribution Rate|
|More than £27,000 but not less than £60,000||12.05%|
|More than £60,000||12.75%|
Pensionable pay includes basic salary, additional salary on temporary promotion and competence related threshold payments. Overtime pay, housing allowance and transitional rent allowance are not pensionable.
Contributions are deducted from pay before it is assessed for income tax, so you will automatically receive full income tax relief at the highest rate you pay.