Item Welcome to the NHS Business Services Authority Knowledge Base, the place to ask us anything you need to know

Document What is the Earnings Cap?

Between the 1 June 1989 and the 31 March 2008 there was a limit on the amount of pay which was pensionable for members joining the Scheme for the first time or who had a break in membership of 12 months or more during this period. This limit is referred to as the Earnings Cap.

From 1 April 2008 there is no limit on the maximum amount of pay that can be pensionable, however , the earnings cap may still apply to the calculation of Scheme retirement benefits and transfer payments for scheme membership between 1 June 1989 and 31 March 2008. The cap may also apply to pension benefits resulting from the purchase of Added Years or unreduced lump sum where the agreement started before 1 April 2008 (Added Years bought under a contract starting from 1 April 2008 onwards are not capped).
Where it is relevant the cap must be applied to the relevant pension benefits and pension benefits resulting from additional voluntary contributions even when actual NHS income did not exceed the cap before 1 April 2008.

If you were subject to the Earnings Cap then your pension will be calculated separately. 
More information, including the Earnings Cap limits from its introduction to date, can be found on the Earnings Cap factsheet which is in the Pay information for 1995 Section members on our website.
earnings cap, earnings