A pay rise is quoted gross. What lands in your bank account depends on Income Tax, employee National Insurance, and any student loan.
How it’s worked out
- Calculate take-home on your current salary and on the new salary (2026/27 rates).
- Optionally deduct student loan repayments on each.
- Net rise = new net pay − current net pay.
In the basic rate band with employee NI at 8%, you often keep about 72% of a rise (losing 20% tax + 8% NI). Crossing into higher rate (above £50,270) or a student loan threshold changes that sharply.
Worked example
£35,000 → £40,000 with no student loan: both salaries sit in the basic rate / main NI band, so the £5,000 gross rise costs 20% tax + 8% NI = £1,400, leaving about £3,600 net.
Frequently asked questions
Why is my net rise less than the gross rise?
Income Tax and employee National Insurance are taken from the extra pay. If you repay a student loan, that takes another slice of income above your plan threshold.
Disclaimer: Results are estimates for guidance only. They are not financial, tax or legal advice. Rules vary with your circumstances — check official guidance or speak to a qualified adviser before making decisions.
Sources
- Income Tax rates and Personal Allowance (checked 5 October 2026)
- Scottish Income Tax rates (checked 5 October 2026)
- Rates and thresholds for employers 2026 to 2027 (checked 5 October 2026)
- National Insurance: how much you pay (checked 5 October 2026)
- National Insurance rates and categories (checked 5 October 2026)
- 2026 to 2027: Student and Postgraduate Loan deduction tables (checked 5 October 2026)
- Tax on dividends (checked 5 October 2026)
- Corporation Tax rates and allowances (checked 5 October 2026)
- Income Tax — changes to tax rates for property, savings and dividend income (checked 5 October 2026)