Public sector vs private sector pay

On basic salary the comparison depends on the job. Public sector scales are often lower than private pay for senior, specialist and professional roles, and closer to or above it in lower-paid roles, where national scales keep pay above the legal minimum. The bigger gap is in the rest of the package. Public sector employers pay far more into pensions than the private sector minimum, and occupational sick pay, holiday and family leave are usually more generous than the statutory floor.

How pay is set

Most public sector pay is set nationally. NHS staff are on Agenda for Change bands, teachers on national pay ranges, councils on the NJC pay spine, and police, fire and armed forces on their own national scales. Pay rises come once a year through pay review bodies or national bargaining. For 2026/27 that meant 3.3 per cent for NHS Agenda for Change staff in England and for NJC council staff, 3.5 per cent for teachers in England from September 2026 and 3.5 per cent for police officers.

You can look up exactly what a job pays and what you will earn after each increment. The price is limited room to negotiate. You cannot usually ask for more than the top of the grade, and a skill in short supply may not attract more pay unless the employer adds a market supplement. Private employers set pay individually and can go above the market to get someone they want, or below it.

Pensions: the biggest gap

Every employer must auto-enrol eligible staff into a pension. The legal minimum is 8 per cent of qualifying earnings in total, with at least 3 per cent from the employer. Public sector schemes are defined benefit schemes, and the employer contributions are much higher:

Scheme	Employer contribution 2026/27
Auto-enrolment minimum (private sector floor)	3% of qualifying earnings
NHS Pension Scheme (England and Wales)	23.7%
Teachers’ Pension Scheme	28.68%
Civil Service (alpha), 2025/26 rate	28.97%

Employees pay in as well. An NHS worker earning £28,855 to £35,155 pays 8.3 per cent, a teacher earning up to £36,198.99 pays 7.4 per cent, and a civil servant earning up to £36,199 pays 4.6 per cent. Many private employers pay more than the minimum, but employer contributions anywhere near these levels are rare.

In a defined benefit scheme your pension is worked out from your pay and years of membership, not from investment returns. That makes it more predictable, and it means the employer carries the investment risk. The NHS Pension Scheme and auto-enrolment guides go into each in more detail. This is general information, and for decisions about your own pension the scheme administrator or a regulated financial adviser can help.

Sick pay, holiday and leave

The legal minimum for sick pay is Statutory Sick Pay: from 6 April 2026, the lower of £123.25 a week and 80 per cent of average weekly earnings, from the first day of sickness. NHS staff and council staff get occupational sick pay on a scale that rises with service, up to 6 months’ full pay and 6 months’ half pay after five years. Teachers get up to 100 working days’ full pay and 100 days’ half pay from their fourth year.

Holiday follows the same pattern. The statutory minimum is 5.6 weeks, which is 28 days for a five-day week and can include bank holidays. NHS staff get 27 days plus 8 public holidays on appointment, rising to 33 days plus public holidays after 10 years. Council staff get at least 23 days plus 8 public holidays and 2 extra days, rising to 26 days after 5 years.

Occupational maternity pay is also typically above the statutory rate in the NHS, teaching and local government, subject to service conditions.

Job security

Public sector jobs can still go through redundancy, restructuring or fixed-term contracts. National terms often include redundancy pay above the statutory minimum and formal redeployment processes. The job security guide looks at where public sector jobs are and are not secure.

Putting a value on the package

To compare two offers, look beyond the gross salary:

1. Work out take-home pay for each, after pension contributions, using the take-home pay calculator.
2. Add the employer pension contribution to each salary to see the total cost of your pay.
3. Compare holiday, sick pay and family leave against what you would get under the statutory minimum.
4. Check progression: a public sector grade has fixed increments, while private sector rises depend on the employer.

The career change into the public sector guide covers what else changes when you move across.