Salary Guide
Take Home Pay UK: What Do You Actually Earn?
Your gross salary is not the amount that reaches your bank account. Take-home pay is what remains after deductions such as income tax and National Insurance.
What is take-home pay?
Take-home pay is your net pay after deductions. It is the amount you actually receive in your bank account from your employer.
For budgeting, rent, mortgage affordability, savings, and bills, take-home pay is usually more useful than gross salary.
What reduces your salary?
- Income tax: tax charged according to income bands.
- National Insurance: another deduction from employment income.
- Pension contributions: if applicable, these can reduce taxable or take-home pay.
- Student loan repayments: these may apply depending on your plan and earnings.
Why gross salary can be misleading
A pay rise, bonus, or new job offer can look simple on paper, but the net increase may be smaller after deductions.
That is why checking take-home pay gives a clearer view of what actually changes month to month.
Calculate your take-home pay
Use the Salary After Tax Calculator to estimate your monthly and yearly take-home pay.
Use Salary Calculator →FAQs
Is take-home pay the same as net pay?
Yes. Take-home pay usually means net pay after deductions.
Why is my take-home pay lower than my salary?
Your gross salary is reduced by deductions such as income tax, National Insurance, pension contributions, and possibly student loan repayments.
Does a pay rise increase take-home pay by the full amount?
Not usually. Tax and other deductions mean your net increase is often less than the gross increase.
Can I use take-home pay for mortgage affordability?
Yes. Monthly take-home pay is useful when judging what repayments may feel affordable.