Payroll changes as state pension age rises
Payroll changes as state pension age rises
Upcoming changes to the state pension age for men and women will see retirement age increase from 66 to 67 years, affecting payroll and national insurance contributions.
From 6 April 2026, the increase will be phased in over the course of two years, meaning that people born between 6 April 1960 and 5 March 1961 will reach their state pension age at 66 years and a specified number of months.
HMRC is warning employers to check which staff fall into the category and can use the state pension age calculator to find the date when an individual will reach state pension age.
Once an employee reaches state pension age, they no longer have to pay national insurance contributions (NICs), but employer’s Class 1 national insurance is still payable.
Employers with employees born between 6 April 1960 and 5 March 1961 should check the date at which individuals reach state pension age, so they can update their national insurance rates and categories and issue the category letters at the correct time, which is the first payment date after the employee has reached state pension age.
It will be necessary to obtain proof from the employee that they have reached state pension age, either through a birth certificate or passport.
Increase in state pension age from 66 to 67 is the same for men and women
| Date of birth | Date state pension age reached |
| 6 April 1960 – 5 May 1960 | 66 years and 1 month |
| 6 May 1960 – 5 June 1960 | 66 years and 2 months |
| 6 June 1960 – 5 July 1960 | 66 years and 3 months |
| 6 July 1960 – 5 August 1960 | 66 years and 4 months |
| 6 August 1960 – 5 September 1960 | 66 years and 5 months |
| 6 September 1960 – 5 October 1960 | 66 years and 6 months |
| 6 October 1960 – 5 November 1960 | 66 years and 7 months |
| 6 November 1960 – 5 December 1960 | 66 years and 8 months |
| 6 December 1960 – 5 January 1961 | 66 years and 9 months |
| 6 January 1961 – 5 February 1961 | 66 years and 10 months |
| 6 February 1961 – 5 March 1961 | 66 years and 11 months |
| 6 March 1961 – 5 April 1977 | 67 years |