Teachers will welcome the news that there is no rise to their employee pension contribution this year – rates will stay the same as 2018/2019.

However, there will be a 2.4% increase in the salary bands for the employee’s contribution rates. This reflects the 2.4% rise in the Consumer Price Index (CPI). This means that employees who were at the bottom of the 2018/19 pay bands may, during 2019/2020, pay less into their pension and so should have more money in their pockets. At a time when prices are rising, more money in teachers’ pockets is likely to be very welcome.

The changes to the salary bands are as follows:

Annual salary rate for the eligible employment from 1 April 2018 – 31 March 2019 Annual salary rate for the eligible employment from 1 April 2019 Employee contribution rate
Up to £27,047.99 Up to £27,697.99 7.4%
£27,048 to £36,410.99 £27,698 to £37,284.99 8.6%
£36,411 to £43,171.99 £37,285 to £44,208.99 9.6%
£43,172 to £57,216.99 £44,209 to £58,590.99 10.2%
£57,217 to £78,022.99 £58,591 to £79,895.99 11.3%
£78,023 and above £79,896 and above 11.7%

 

Further information

For more information, please contact Doug Mullen.