1. What is Net Salary?

Net salary, often called take-home pay, is the amount an employee receives after all deductions from gross salary. In the UK, these deductions typically include Income Tax, National Insurance Contributions, and potentially Student Loan repayments and Pension Contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Total salary before deductions (GBP/year)
• Income Tax — Amount deducted for income tax (GBP)
• National Insurance — Social security contributions (GBP)
• Student Loan — Optional student loan repayments (GBP)
• Pension Contributions — Optional pension payments (GBP)

3. Importance of Net Salary Calculation

Details: Understanding your net salary helps with personal budgeting, financial planning, and comparing job offers. It shows the actual amount you'll receive after mandatory and voluntary deductions.

4. Using the Calculator

Tips: Enter your gross annual salary in GBP, followed by your income tax, national insurance contributions, and optionally any student loan repayments or pension contributions. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total pay before deductions, while net salary is what you actually receive after all deductions.

Q2: How is income tax calculated in the UK?
A: UK income tax uses a progressive system with different tax bands (basic rate, higher rate, additional rate) depending on your income level.

Q3: Are pension contributions mandatory?
A: Auto-enrollment means most UK workers are automatically put into a workplace pension scheme, though you can opt out.

Q4: When are student loans repaid?
A: Student loan repayments begin when your income exceeds a certain threshold (£27,295 per year for Plan 2 loans in 2023/24).

Q5: Why is this called "Table Tennis"?
A: The name is unrelated to the calculator's function - it appears to be an artifact from the template naming convention.