The NHS pension system uses two different contribution forms. If you are a locum doctor, you almost certainly need a Type 2 form — and you need one for every trust you work at. Here is everything you need to know.
The NHS pension scheme requires different paperwork depending on how you are engaged. A Type 1 form (SD502) covers salaried doctors with pension deducted automatically through payroll. A Type 2 form (SD502A) is for locum doctors, sessional GPs, and freelance practitioners who must manually opt in for each trust engagement.
If you work locum shifts for NHS trusts — whether through an agency or directly — you need a Type 2 form. If you skip this step, your earnings from that engagement are not pensionable, and the lost accrual cannot be recovered.
| Feature | Type 1 — SD502 | Type 2 — SD502A |
|---|---|---|
| Who uses it | Salaried GPs, employed consultants, staff-grade doctors | Locum doctors, sessional GPs, freelance practitioners, out-of-hours doctors |
| How contributions work | Deducted automatically from monthly payroll | Deducted from gross fees per engagement — you must opt in |
| Who submits it | Employer (automatic on appointment) | The doctor (manual submission to each trust) |
| Contribution tiering | Based on annual salary | Based on annualised earnings from that specific engagement |
| How many forms | One per employer | One per trust per tax year |
| Employer pension contribution | 23.7% (paid by employer) | 23.7% (paid by the trust on top of your fees) |
| Can you backdate? | N/A — automatic | No. Lost pension accrual is permanent. |
The employer contribution of 23.7% makes the NHS pension one of the most valuable benefits available to locum doctors. On £80,000 of pensionable earnings, the employer pays £18,960 in additional contributions. Not submitting a Type 2 form means forgoing this entirely.
The Type 1 form is the standard NHS pension joiner form for doctors employed on a salaried contract. If you are a salaried GP, hospital consultant, registrar, or any doctor employed directly by an NHS trust or GP practice, your employer handles this automatically when you start.
For most salaried doctors, the Type 1 form is handled entirely by the employer and requires no action from you. The complexity arises when you do both salaried and locum work.
The Type 2 form is where most locum doctors encounter problems. Unlike the Type 1, it requires active action from you for every trust you work at during the tax year.
Your contribution rate on a Type 2 form is based on annualised earnings from that specific engagement, not your total income. This is a crucial distinction.
For example, if you earn £3,000 per month from one trust (annualised to £36,000), your contribution rate for that trust is 9.8%. If you also earn £8,000 per month from another trust (annualised to £96,000), that trust applies the 12.5% rate. Each trust calculates independently.
| Annualised Pensionable Pay | Employee Contribution Rate |
|---|---|
| Up to £13,246 | 5.2% |
| £13,247 – £26,832 | 6.5% |
| £26,833 – £32,692 | 8.3% |
| £32,693 – £49,078 | 9.8% |
| £49,079 – £62,924 | 10.7% |
| £62,925 – £72,031 | 11.6% |
| £72,032 – £120,000 | 12.5% |
| Over £120,000 | 13.5% |
If you do a single high-value shift (e.g. £2,000 for one day), the trust may annualise that to £520,000 and apply the 13.5% rate. This is technically correct under NHS pension rules, but it means your contribution percentage can be much higher than expected for short engagements. Check your payslips carefully.
Every AccTek locum doctor client gets a pension tracking review as part of the annual service. We cross-reference your Type 2 submissions against payslips and pension statements to catch any missing accrual before it's too late.
These are the errors we see most frequently when reviewing locum doctor pension positions. All of them are avoidable with a simple tracking system.
The most common and most expensive mistake. If you assume the agency or trust handles it, you may discover at year end that several months of locum earnings were not pensionable. There is no backdating mechanism.
The Type 2 form must go to the trust's payroll department, not your agency. Some agencies forward it on your behalf, but many do not. Always confirm directly with the trust that they have received your form.
Type 2 forms cover a specific tax year. If you continue working at the same trust into the next tax year, you need to submit a fresh form. Some trusts carry forward the election, others do not — don't assume.
The trust calculates your rate based on annualised pay from that engagement. If the rate is wrong (e.g. they've annualised a single shift incorrectly), you may overpay. Check every payslip and query discrepancies promptly.
Some locum doctors opt out of the pension to increase take-home pay. Given the 23.7% employer contribution, this is almost always a poor financial decision. Read our guide on common tax mistakes made by doctors for more on this.
A locum A&E doctor earning £120,000 across four trusts forgot to submit a Type 2 form to one trust where she earned £35,000. The missed employer contribution alone was £8,295 (23.7% of £35,000), plus her own pension accrual was permanently lost. A 5-minute form would have prevented it.
Many doctors combine salaried and locum work. In this case, you need both form types running simultaneously.
Dr Ahmed works three days per week as a salaried GP (covered by a Type 1 form through the practice) and does locum A&E shifts at two hospitals on weekends (each requiring a separate Type 2 form). He has three pension contribution streams feeding into one NHS pension record.
All your pensionable earnings across Type 1 and Type 2 engagements are combined when calculating your pension input amount for annual allowance purposes. High earners combining salaried and locum income can easily breach the £60,000 standard annual allowance.
Use our free NHS pension annual allowance calculator to check whether your combined pension growth triggers a tax charge.
If your income exceeds £100,000, you may also hit the £100k personal allowance trap, creating a 60% effective marginal tax rate alongside the pension charge.
Your ability to join the NHS pension through a Type 2 form depends on how your locum work is structured.
If you work directly for a trust or through an agency with an NHS pension framework agreement, you can submit a Type 2 form and access the pension. This applies whether you are inside or outside IR35.
If you work through your own limited company and the company contracts with the trust (rather than you personally), you generally cannot access the NHS pension for that engagement. The pension is available to individual practitioners, not corporate entities.
This is one of the key trade-offs when deciding whether to incorporate. The tax savings from a limited company must be weighed against losing the 23.7% employer pension contribution.
You can claim allowable locum expenses while also contributing to the NHS pension. Expenses reduce your taxable income, which can help keep you below the annual allowance taper thresholds.
Type 1 (SD502) is for salaried doctors with pension deducted automatically via payroll. Type 2 (SD502A) is for locum doctors, sessional GPs, and freelance practitioners who must opt in manually for each trust engagement.
Yes. A separate Type 2 form is required for each trust or health board during each tax year. There is no central registration covering all trusts.
Your earnings from that engagement will not be pensionable. The lost pension accrual is permanent — there is no mechanism to backdate Type 2 submissions.
Download form SD502A from the NHS Business Services Authority (NHSBSA) website, or request it from the trust's payroll or medical staffing team.
It depends on the agency. Some agencies with NHS pension framework agreements handle the paperwork. Many do not. Always confirm directly with the trust's payroll that your pension contributions are being deducted.
Rates are based on annualised pensionable earnings from that specific engagement, not your total income. Each trust calculates your rate independently.
Yes, but given the 23.7% employer contribution, opting out is almost always a poor financial decision. Speak to a specialist accountant before opting out.
Submit before or at the start of each engagement. Trusts cannot process pension contributions retroactively for shifts worked before the form was received.
AccTek tracks your pension submissions across every trust — from £19.99/month.
This guide is for general information only and does not constitute pension, tax, or financial advice. NHS pension rules are subject to individual circumstances and regional differences. Always consult a qualified Chartered Accountant or independent financial adviser before making pension decisions. Contribution rates shown are for the 2026/27 tax year unless stated otherwise.
Kishan Kedia ICAI, CAMS is a specialist accountant at AccTek with 20+ years of experience in locum doctor tax, NHS pension annual allowance, landlord tax, Section 24 planning and Making Tax Digital for Income Tax. He holds the ICAI qualification and is a Certified Anti-Money Laundering Specialist (CAMS).
