What if I work part time or term time?

From 1st April 2014 you only pay contributions on the pay you actually earn. Each April, your employer will decide your appropriate rate of contributions for each employment by matching your actual pensionable pay to the appropriate band in the contribution rates table.

Example

Kate works part time. She works half the hours of a full time colleague.

If she were a full time employee her pay would be £18,000 per year. As she only works half of this time her actual part time pay is £9,000 so she falls into pay band 1. This makes her contribution rate 5.5%.

See Example of how are my benefits worked out if I work part time or term time for more details about how your benefits are worked out when you retire if you work part time or term time