The Local Government Pension Scheme (LGPS) has confirmed the revised employee contribution bands that will apply from 1 April 2026. These updated bands reflect a 3.8% uplift, in line with the September 2025 CPI figure, with amounts rounded down to the nearest £100.
What employers need to know
From 1 April 2026, all scheme employers must apply the new pay bands when determining each employee's contribution rate. The rates themselves are unchanged, but the salary thresholds have increased, meaning some employees may move into a different band depending on their actual pensionable pay.
2026/27 Employee contribution bands
| Band | Pensionable Pay | Main Section | 50/50 Section |
|---|---|---|---|
| 1 | Up to £18,400 | 5.50% | 2.75% |
| 2 | £18,401–£29,000 | 5.80% | 2.90% |
| 3 | £29,001–£47,300 | 6.50% | 3.25% |
| 4 | £47,301–£59,800 | 6.80% | 3.40% |
| 5 | £59,801–£84,000 | 8.50% | 4.25% |
| 6 | £84,001–£119,100 | 9.90% | 4.95% |
| 7 | £119,101–£140,400 | 10.50% | 5.25% |
| 8 | £140,401–£210,700 | 11.40% | 5.70% |
| 9 | £210,701+ | 12.50% | 6.25% |
Action for employers
To ensure a smooth transition on 1 April 2026, employers should:
- Update payroll systems as soon as possible to reflect the new thresholds.
- Review employee communications, including payslip notes and induction materials.
- Consider annual pay reviews - changes in pensionable pay may move employees into higher or lower bands.
- Ensure HR and payroll teams are briefed, particularly where employees have multiple employments.
Next steps
Administering authorities have been asked to share the new bands promptly with employers, and we recommend early implementation planning to avoid errors at the start of the new scheme year.
If you would like tailored wording for employee communications or assistance with payroll impact analysis, please contact Doug Mullen or Lauren Broderick.
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