FAQ: Are practices allowed to state ‘pension not included’?

Any practice that is a member of the NHS Pension scheme, which is a Workplace pension scheme, has a legal duty to pay the NHS Pension Scheme employer’s contribution from their own funds, and must not deduct this from the locum’s fee, usually by dividing the expected rate by 1.12942 to factor in their 14.38% employer contribution.

LocumDeck does not have a “pension included” button as it enables practices to set “pension inclusive” rates, which have a pernicious, negative impact on the NHS pension rights of GP locums.

NASGP has received reports from many colleagues that “pension-inclusive” rates can enable practices to negotiate a lower the fee paid to locums who are claiming pension compared to those who are not claiming pension, which is against the law.

Your employer cannot…unfairly dismiss or discriminate against you for staying in a workplace pension scheme.

NASGP believes it is more transparent to clearly separate out the session fee and employer contribution elements so that it is clear to all parties that a pensioning locum is accepting a lower fee in comparison to a non-pensioning locum.

NB as a self-employed GP locum, you are an independent contractor and therefore should be setting your own rates (in the same way an accountant, lawyer, architect would). Where practices set rates, they are behaving more towards being an employer by dictating their Terms upon you, and must be made aware that this could affect their position in relation to IR35.

If a practice insists on deducting their contribution from your fee, there is action you can take.