TPS Contribution Rates 2025/26
What comes off your payslip — and what it really costs after tax relief
Gross (annual)
£45,352
Net (TPS on)
£32,944
Net (monthly)
£2,745
About this pay scale
Your TPS employee contribution is a percentage of your pensionable pay (basic salary plus pensionable allowances such as TLR and SEN), set by the tier your pay falls into. Because contributions are deducted before income tax, the real cost is lower than the headline rate — a basic-rate taxpayer on the 8.9% tier effectively pays around 7.1% of gross after tax relief; a higher-rate taxpayer on the 10.5% tier effectively pays around 6.3%. Your employer contributes 28.68% of pensionable pay on top — the largest employer contribution of any mainstream UK pension.
Tier thresholds are uprated by CPI each April (mid-tax-year, not mid-academic-year), and your tier is reassessed when your pay changes — a pay award or TLR can move you up a tier. Part-time teachers' tiers are set by actual (pro-rated) pensionable pay, not the full-time equivalent, so going part-time can reduce your contribution rate as well as your pay.
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
Which TPS tier am I in?
Find your pensionable pay (basic salary + TLR + SEN allowances) in the tier table above. For 2025/26: under £34,872 pays 7.4% — that covers M1-M2 in most of England. M3-M6 Rest of England falls in the 8.9% tier. UPR and most Fringe/London teachers span the 8.9%-9.9% tiers. Leadership pay typically sits in the 10.5%-11.6% tiers.
What does my employer contribute?
Schools contribute 28.68% of your pensionable pay (the rate set from April 2024, funded for state schools by the DfE's Teachers' Pension Employer Contribution Grant). On an M6 salary of £45,352 that's around £13,000 a year on top of your salary — a major part of total reward that's easy to overlook when comparing jobs outside teaching.
Does a pay rise that crosses a tier boundary cost me money?
No — unlike income-tax brackets, the TPS tier rate applies to your whole pensionable pay, but the tier thresholds are set so a rise never leaves you worse off net. The step up in contribution (e.g. 7.4% → 8.9% crossing £34,872) takes a slice of the rise, not more than it. The tax-relief effect softens it further.
Do TLR and SEN allowances count towards my tier?
Yes — both are pensionable, so they count towards the pensionable pay that sets your tier and they build pension accrual. Out-of-hours payments and most one-off payments are not pensionable.
Are TPS contributions taken before or after tax?
Before. The contribution reduces your taxable pay, so a 9.9% contribution costs noticeably less than 9.9% of your take-home. National Insurance is still charged on the full gross figure.
What happens if my pay crosses a tier threshold mid-year?
Your contribution rate changes from the point your pensionable pay changes. Because tiers are banded rather than marginal, the new rate applies to all pensionable pay, not just the part above the threshold.
Do TLR and SEN allowances count towards the tier?
Yes. TLR and SEN allowances are pensionable, so they count towards the pay figure used to set your contribution tier. Taking on a TLR can therefore move you into a higher band and raise the rate on your whole salary.
Try the calculator
Tier thresholds change each April with CPI while pay changes each September, so the tier you fall into can shift twice in one academic year. The calculator applies whichever tier matches the pay you enter.