The 2026/27 contribution tiers
Member contributions are banded across six tiers. Teachers’ Pensions assesses the annual salary rate for each eligible employment, based on actual pensionable earnings in the pay period; it is not the FTE pay-point figure for part-time work.
| Annual salary rate for the eligible employment | Contribution rate |
|---|---|
| Up to £36,198.99 | 7.4% |
| £36,199 – £48,727.99 | 8.9% |
| £48,728 – £57,776.99 | 9.9% |
| £57,777 – £76,572.99 | 10.5% |
| £76,573 – £104,413.99 | 11.6% |
| £104,414 and above | 12% |
| Point | Salary | Tier | Annual contribution | Monthly |
|---|---|---|---|---|
| M1 | £34,069 | 7.4% | £2,521 | £210 |
| M2 | £36,042 | 7.4% | £2,667 | £222 |
| M3 | £38,400 | 8.9% | £3,418 | £285 |
| M4 | £40,941 | 8.9% | £3,644 | £304 |
| M5 | £43,529 | 8.9% | £3,874 | £323 |
| M6 | £46,940 | 8.9% | £4,178 | £348 |
| U1 | £49,134 | 9.9% | £4,864 | £405 |
| U3 | £52,835 | 9.9% | £5,231 | £436 |
How much do teachers pay into their pension, in total?
A typical M4 member contribution is £3,644 a year, or about £304 a month. The employer rate at that salary is about £11,742, including the administration levy.
| Point | You pay | Employer pays (28.68%) | Total into the scheme |
|---|---|---|---|
| M1 | £2,521 | £9,771 | £12,292 |
| M4 | £3,644 | £11,742 | £15,386 |
| M6 | £4,178 | £13,462 | £17,640 |
| U3 | £5,231 | £15,153 | £20,384 |
How part-time contribution rates work
For each eligible employment, Teachers’ Pensions annualises the actual pensionable earnings in the pay period to determine the tier. It does not select the tier from a part-time teacher’s FTE pay point.
| Basis | Salary | Tier | Annual contribution |
|---|---|---|---|
| What actually happens (annualised actual pay) | £31,701 | 7.4% | £2,346 |
| Incorrect FTE-based result | £52,835 | 9.9% | £3,138 (9.9% of £31,701) |
| Difference | £792 a year less under the correct method |
The cash amount is a percentage of actual pensionable earnings, and annualised actual earnings select the tier. A change in hours, pay or pensionable allowances can therefore change the rate. The full mechanics are in the part-time pay guide.
The tier cliff edges
Because the rate applies to your whole salary, crossing a boundary changes your contribution on every pound. The first 2026/27 boundary is £36,198.99, so an M2-to-M3 move crosses from 7.4% to 8.9%.
| M2 | M3 | Change | |
|---|---|---|---|
| Gross salary | £36,042 | £38,400 | +£2,358 |
| Pension contribution | £2,667 | £3,418 | +£751 |
| Take-home increase | ≈+£1,100 a year |
Tax relief: what you actually save
Contributions are taken under net pay arrangements: your pension comes out before income tax is calculated, so you never pay tax on the money you contribute. A higher-rate taxpayer on U3 effectively pays £3,139 for £5,231 of pension saving.
What net pay does not save is National Insurance, which is charged on gross pay before the pension is deducted. This is the practical difference between the TPS and a salary-sacrifice arrangement — set out fully in the salary sacrifice explainer.
Paying in more: AVCs and the 50/50 option
Beyond the tiered contributions there are two ways to pay in more. AVCs — run with Prudential — build a separate invested pot on top of your guaranteed pension; the AVC calculator projects one. The 50/50 section, available in the LGPS but not the TPS, halves contributions for support staff in exchange for half accrual.
Within the TPS itself there is no option to reduce contributions — it is the full tier or opting out entirely, and opting out forfeits the 28.68% employer contribution, which is almost never a rational trade.
Frequently asked questions
How much do teachers pay into their pension?
The 2026/27 rates are 7.4% to 12%. At the current England advisory points, M1 pays £2,521 a year, M4 £3,644, M6 £4,178 and U3 £5,231. The employer rate is 28.68%, including the administration levy.
What percentage is the teacher pension contribution?
The 2026/27 tiers are 7.4% to £36,198.99, 8.9% to £48,727.99, 9.9% to £57,776.99, 10.5% to £76,572.99, 11.6% to £104,413.99 and 12% above that. Teachers’ Pensions uses annual salary rate for each eligible employment, based on actual pensionable earnings for part-time work.
Do part-time teachers pay less into the pension?
They pay a lower cash amount and their tier is based on annualised actual pensionable earnings for that employment. A 0.6 FTE teacher on U3 earning £31,701 is in the 7.4% tier, not the 9.9% FTE tier.
How much does the government contribute to teachers’ pensions?
The employer rate is 28.68% of pensionable pay, including the 0.08% administration levy. On a £40,941 M4 salary that is about £11,742 a year.
Do teacher pension contributions reduce my tax?
Yes, fully, through the net-pay arrangement: contributions are deducted before income tax is calculated. They do not reduce National Insurance, which is charged on gross pay — the key difference from salary sacrifice.
Why did my pension contribution jump this year?
A pay rise, allowance or change in hours may have moved the annualised actual pensionable earnings for that employment across a tier boundary. The higher rate then applies to all pensionable earnings in the pay period.
Are TLR payments pensionable for contributions?
Yes. TLR 1, TLR 2 and SEN allowances all count as pensionable pay, increasing both the contribution you pay and the 1/57th of pension you build each year. TLR 3 is pensionable while it is paid but is fixed-term by design.
Can I opt out of teacher pension contributions?
You can opt out, but it forfeits the 28.68% employer contribution and the CPI+1.6% revaluation on everything you have built. For most teachers staying in is worth several thousand pounds a year in employer money alone. Take regulated advice before leaving a defined-benefit scheme.
Sources
Related tools and guides
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