Periods of absence from work can affect your pension in different ways, depending on the type of absence and how long it lasts.
What is APP?
APP (Assumed Pensionable Pay) is an estimate of the pay you would have earned if you had been working normally. Where APP applies, this assumed pay is used when calculating your pension so that you do not lose pension benefits because of certain types of absence. For example, if you are on a qualifying period of sick leave or child-related leave, APP may be used instead of the lower pay you received during that period.
Quick Overview
| Type of absence | Does pension continue? | Is APP used? | Can lost pension be bought back? |
|---|---|---|---|
| Sick leave | ✔ Yes | ✔ Yes | Not required |
| Child-related leave | ✔ Yes | ✔ Yes | Not required |
| Unpaid leave of less than 15 days | ✔ Yes | ✔ Yes | Not required |
| Unpaid leave of 15 days or more | ✖ Not automatically | ✖ No | ✔ QAPA |
| Other types of unpaid leave | ✖ No | ✖ No | ✔ APC |
Sick Leave
Your pension is not affected while you are on sick leave. You will pay your normal contribution rate on any pay you receive.
For any period when you receive reduced pay or no pay, we will use Assumed Pensionable Pay (APP), which is the pay you would have received had you been working normally. This is the pay used to calculate your pension for that period.
Child-related Leave
Different rules apply to relevant child-related leave and unpaid child-related leave. Relevant child-related leave includes:
- Ordinary maternity or adoption leave.
- Paid additional maternity or adoption leave.
- Unpaid additional maternity or adoption leave where the period began on or after 1 April 2026.
- Paid shared parental leave.
- Unpaid shared parental leave where the period began on or after 1 April 2026.
- Paternity leave.
- Bereaved partner's paternity leave.
- Paid parental bereavement leave.
- Paid neonatal care leave.
During these periods, you will pay your normal contribution rate on any pensionable pay you receive. Your pension will be calculated using Assumed Pensionable Pay (APP), which is the pay you would have received had you been working normally.
You will not need to buy back any lost pension for qualifying periods of unpaid leave that begin on or after 1 April 2026. You will continue to build up pension as though you were receiving your normal pay.
Unpaid Leave of Less Than 15 Days
From 1 April 2026, if your employer allows you to take unpaid leave lasting less than 15 days, your pension will continue to build up during that period. You and your employer will pay the pension contributions that would have been paid had you been working and receiving your normal pay.
This change does not apply if you were unpaid because you were on strike. Periods of strike action do not automatically count for pension purposes, regardless of their length.
Unpaid Leave of 15 Days or More
If your employer allows you to take unpaid leave lasting 15 days or more, the break will not automatically count for pension purposes. You can choose to buy back some or all of the pension lost during the unpaid period by paying additional contributions. The contributions can be paid as a lump sum or through regular deductions from pay. An arrangement known as a Qualifying Additional Pension Arrangement (QAPA) applies to unpaid leave beginning on or after 1 April 2026.
- More time to decide - the deadline has increased from 30 days to one year after returning to work, or the date you leave the relevant employment, whichever is earlier.
- Contributions based on your normal pay - you and your employer will pay the contributions that would have been paid had you been working normally.
- Full pension for the period - the pension you buy reflects the pension you would have built up had you been working.
- No medical evidence required - neither your pension fund nor your employer can require a medical report before allowing QAPA.
See the lost pension calculator for information about the rules that applied to authorised unpaid breaks that began before 1 April 2026.
Other Types of Unpaid Leave
If you have been absent from work for one or more whole days for any reason, including industrial action, jury service or reserve armed forces service, you will not build up any pension for the days you were absent. If you wish to avoid this loss of pension, you can buy back the lost pension by entering into an Additional Pension Contributions (APC) contract.
The lost pension will be calculated as 1/49 of the APP for the period of absence if you were in the main section, or 1/98 if you were in the 50/50 section.
Want to buy back lost pension?
Use the lost pension calculator to estimate the cost of buying back pension lost during a period of unpaid leave that began after 1 April 2026.