The Pay Packet

NHS pay and pension explained

NHS pay follows the Agenda for Change bands, and the NHS Pension takes a tiered slice on top of tax and National Insurance. Here's how both work in 2026/27 — and why the pension cuts your tax but not your NI.

Plain-English reference · checked for 2026/27 · updated June 2026

Work out your own numbers: NHS take-home calculator

Almost all NHS staff in England — nurses, paramedics, midwives, allied health professionals and more — are paid on the Agenda for Change (AfC) scale. It is a set of bands, each with a few pay points you move up with experience. From 1 April 2026 every point rose by 3.3%.

The Agenda for Change bands (2026/27)

BandSalary range
Band 2£25,272
Band 3£25,760 – £27,476
Band 4£28,392 – £31,157
Band 5£32,073 – £39,043
Band 6£39,959 – £48,117
Band 7£49,387 – £56,515
Band 8a–8d£57,528 – £108,814
Band 9£112,782 – £129,783

A newly qualified nurse typically starts at Band 5; an experienced specialist nurse or paramedic is often Band 6 or 7. (Staff in London also get a High Cost Area Supplement on top, which we don't yet include.)

The NHS pension is tiered

The NHS Pension Scheme is one of the best workplace pensions around, but it takes a meaningful slice of pay. Your contribution rate is tiered — the more you earn, the higher the percentage, charged on your whole pensionable pay:

Pensionable payContribution
Up to £13,2595.2%
£13,260 – £28,8546.5%
£28,855 – £35,1558.3%
£35,156 – £52,7789.8%
£52,779 – £67,66810.7%
£67,669 and above12.5%

So a Band 6 nurse on £39,959 contributes 9.8% — about £3,916 a year.

Why it reduces your tax but not your NI

The NHS pension is a net-pay arrangement. Your contribution comes off your salary before Income Tax is worked out, so you automatically get tax relief at your highest rate — a basic-rate taxpayer effectively pays 80p for each £1 that goes into the pension. But it is taken after National Insurance, so it does not reduce your NI. That is different from a salary-sacrifice pension, which saves both.

What it means for take-home

For a Band 6 nurse on £39,959, the order is: gross pay, minus the 9.8% pension (before tax), then Income Tax on what's left, then National Insurance on the full salary. The result is a take-home of around £2,430 a month — comfortably more than the headline 9.8% + tax + NI would suggest, because the pension itself is buying you a valuable guaranteed retirement income. Our NHS take-home calculator works it out for any band and pay point, with the right pension tier applied automatically.

In short

NHS pay runs on the Agenda for Change bands (up 3.3% for 2026/27), and the NHS Pension takes a tiered 5.2%–12.5% on top. Because it is a net-pay scheme, the contribution cuts your Income Tax but not your National Insurance. Teachers have a similar set-up — see the teacher calculator.

More guides