1. What Is Net Salary?

Net salary (take-home pay) is the amount you receive after all deductions from your gross salary. It's the actual amount that gets deposited into your bank account.

2. How Net Pay Is Calculated

The calculator uses this formula:

Where:

• Gross Pay — Your total salary before deductions
• Income Tax — Deducted based on your tax code and income band
• National Insurance — Contribution to state benefits
• Student Loan — Repayments if applicable (Plan 1, 2, or 4)
• Pension — Workplace or personal pension contributions

3. Understanding UK Deductions

Income Tax: In the UK, income tax bands for 2023/24 are:

• Personal Allowance: Up to £12,570 (0%)
• Basic rate: £12,571 to £50,270 (20%)
• Higher rate: £50,271 to £125,140 (40%)
• Additional rate: Over £125,140 (45%)

National Insurance: Rates vary between 12% and 2% depending on earnings.

4. Using The Calculator

Tips: Enter your annual gross salary and all known deductions. For accurate results, use figures from your payslip or HMRC tax code notice.

5. Frequently Asked Questions (FAQ)

Q1: Why is my net pay lower than calculated?
A: There may be additional deductions not accounted for here like union fees, company benefits, or voluntary deductions.

Q2: How often should I check my net pay?
A: Review whenever your tax code changes, you get a pay rise, or your circumstances change (marriage, student loan repayment completion).

Q3: Are bonuses included in gross pay?
A: Yes, all taxable earnings should be included in your gross pay figure.

Q4: What if I have multiple jobs?
A: You'll need to calculate each job separately as tax codes may differ.

Q5: How accurate is this calculator?
A: It provides estimates. For precise figures, consult your payslip or HMRC's tax calculator.