1. What Is Net Salary?

Net salary is the amount of money you take home after all deductions have been made from your gross salary. In the UK, these deductions typically include Income Tax, National Insurance contributions, student loan repayments, and pension contributions.

2. How The Calculator Works

The calculator uses the following formula:

Where:

• Gross Pay — Your total salary before deductions
• Income Tax — Amount deducted for UK income tax
• National Insurance — Contributions to UK social security
• Student Loan — Repayments for student loans (if applicable)
• Pension Contributions — Workplace or private pension payments

3. Understanding UK Deductions

Income Tax: Progressive tax system with different rates for different income bands (basic rate, higher rate, additional rate).

National Insurance: Contributions that entitle you to certain state benefits including State Pension.

Student Loans: Only deducted if you earn above the repayment threshold.

Pension: Contributions may be made pre-tax (salary sacrifice) or post-tax.

4. Using The Calculator

Tips: Enter your gross annual salary and all known deductions. For student loans and pension, enter 0 if not applicable.

5. Frequently Asked Questions (FAQ)

Q1: How often are these deductions taken?
A: Typically monthly for PAYE employees, but this calculator shows annual amounts.

Q2: Are pension contributions tax-free?
A: Usually yes - most workplace pensions use pre-tax contributions.

Q3: How do I know my exact tax code?
A: Check your payslip or HMRC online account for your current tax code.

Q4: What if I have multiple jobs?
A: Each job is taxed separately, though your tax code may be adjusted.

Q5: Does this include bonuses?
A: No - bonuses are taxed separately and may use different tax rates.