Teachers' Pension Scheme (TPS) Calculator
Career Average Revalued Earnings (CARE) — 6 contribution tiers
Gross (annual)
£45,352
Net (TPS on)
£32,944
Net (monthly)
£2,745
About this pay scale
The Teachers' Pension Scheme (TPS) is the workplace pension for state-school teachers in England and Wales. It's a Career Average Revalued Earnings (CARE) public-sector scheme — your pension at retirement is based on the average of your career earnings (each year revalued by CPI), not your final salary. The employer contributes around 28.6% of pensionable pay; the employee contribution is tiered by salary band.
The "tier" you fall into is determined annually by your pensionable pay (basic + pensionable allowances like TLR + SEN). Pension contributions come off your gross pay before income tax — so a 9.9% contribution costs you less than 9.9% in net terms because of the tax relief.
TPS 2025/26 contribution tiers
Your employee contribution rate is set by the tier your pensionable pay falls into. Effective April 2025 (uprated annually).
| Pensionable pay | Employee contribution |
|---|---|
| Up to £34,872 | 7.4% |
| £34,873 – £46,943 | 8.9% |
| £46,944 – £55,660 | 9.9% |
| £55,661 – £73,768 | 10.5% |
| £73,769 – £100,590 | 11.6% |
| Over £100,591 | 12.0% |
Tiers 2-6 went up by 0.3 percentage points from April 2025 to maintain the 9.6% scheme yield target. Tier 1 (~34% of TPS members) was unchanged at 7.4%, protecting the lowest-paid members.
FAQ
How are TPS tier rates set?
TPS contribution rates are set by the Department for Education to ensure the scheme remains funded. The "scheme yield" target is currently around 9.6% (average member contribution across all tiers). Tier thresholds are uprated annually by CPI; tier rates are reviewed periodically — tiers 2-6 went up by 0.3 percentage points in April 2025 to maintain the yield target.
Can I opt out of TPS?
Yes. Teachers are automatically enrolled into TPS but can opt out. Opting out means you forgo employer contributions (~28.6% of pay) — usually a very poor decision financially unless you have a specific reason (e.g. close to lifetime allowance limits, or have a higher-yield personal pension already). If you opt out and re-enrol later, the gap reduces your final pension.
Why did tier rates go up in April 2025?
Following the latest scheme valuation, the Government Actuary recommended uprating tiers 2-6 by 0.3 percentage points to maintain the 9.6% average yield. Tier 1 (under £34,872 in 2025/26) was left unchanged at 7.4%, protecting the lowest-paid TPS members.
How does TPS work after retirement?
TPS pension is paid for life, increased annually by CPI. The normal pension age is now linked to the State Pension Age (currently 67, rising). You can take TPS pension early from age 55 (62 from 2028) with actuarial reduction. You can also take part of your pension as a tax-free lump sum (typically 25% of the capital value).
How much pension do I build up each year?
In the career-average scheme you accrue 1/57th of your pensionable earnings each year, revalued annually (by CPI + 1.6% while you remain in service). Worked example: a teacher on M6 (£45,352) banks £45,352 ÷ 57 ≈ £796 of annual pension for that year — before revaluation. Thirty broadly similar years compound to a meaningful index-linked income.
Does this calculator cover Scottish teachers?
No — Scotland has its own scheme (the Scottish Teachers' Pension Scheme, administered by SPPA) with different contribution tiers, and Scottish teachers are paid on SNCT scales rather than STPCD. This calculator covers the England & Wales TPS. Northern Ireland also has a separate scheme.
Try the calculator
The figures on this page assume a full-time teacher (1.0 FTE) on TPS at the appropriate contribution tier, no student loan, no salary sacrifice. Real life is more nuanced — use the calculator to layer in your specific situation (part-time FTE, TLR / SEN allowances, student loan, exact pay point) and see your real take-home.