Salary and income data is based on ONS and other official UK statistical sources. Figures are averages and may not reflect your individual circumstances.
Contents
Understanding gross vs net helps you budget accurately and understand your payslip.
Read more: See our Salary By Profession guide for a complete overview of this topic.
Basic Definition
Gross Pay
What It Is
Details
Total pay
Before deductions
Includes
Base salary + bonuses
Headline figure
Job adverts use this
Your “salary”
In contracts
Net Pay
What It Is
Details
Take-home pay
What you actually receive
After
All deductions
In your bank
Each payday
Spending money
What you have
Simple Example
Element
Amount
Gross monthly
£3,000
Income Tax
-£391
National Insurance
-£156
Pension
-£150
Net pay
£2,303
What’s Deducted
Typical Deductions
Deduction
What It Is
Income Tax
Tax on earnings
National Insurance
Contributions to state benefits
Pension
Workplace pension
Student Loan
If applicable
Other
Childcare vouchers, unions, etc.
Income Tax 2026/27
Band
Taxable Income
Rate
Personal Allowance
£0 - £12,570
0%
Basic Rate
£12,571 - £50,270
20%
Higher Rate
£50,271 - £125,140
40%
Additional Rate
Over £125,140
45%
National Insurance 2026/27
Earnings
Rate
Below £12,570
0%
£12,570 - £50,270
8%
Above £50,270
2%
Employee Class 1 National Insurance is 8% on earnings between the Primary Threshold and Upper Earnings Limit, and 2% above that — this is the current rate; it was cut from 12% to 10% in January 2024 and to 8% from April 2024, so older figures you may see elsewhere online are out of date.
Student Loan (2026/27)
Plan
Threshold
Rate
Plan 1
£26,900
9%
Plan 2
£29,385
9%
Plan 4 (Scotland)
£33,795
9%
Plan 5
£25,000
9%
Postgrad
£21,000
6%
Student loan thresholds are uprated each April — always check the current figure for the tax year in question via gov.uk.
Example Calculations
£30,000 Gross Salary
Element
Annual
Monthly
Gross salary
£30,000
£2,500
Income Tax
-£3,486
-£290
National Insurance
-£1,394
-£116
Net (no pension)
£25,120
£2,093
With 5% Pension
Element
Annual
Monthly
Gross salary
£30,000
£2,500
Pension (5%)
-£1,500
-£125
Taxable
£28,500
-
Income Tax
-£3,186
-£266
National Insurance
-£1,274
-£106
Net
£24,040
£2,003
£50,000 Gross Salary
Element
Annual
Monthly
Gross salary
£50,000
£4,167
Income Tax
-£7,486
-£624
National Insurance
-£2,994
-£250
Net (no pension)
£39,520
£3,293
£75,000 Gross Salary
Element
Annual
Monthly
Gross salary
£75,000
£6,250
Income Tax
-£17,432
-£1,453
National Insurance
-£3,511
-£293
Net (no pension)
£54,057
£4,505
Quick Reference Table
Annual Gross to Net (No Pension)
Gross
Income Tax
NI
Net
Monthly Net
£20,000
£1,486
£594
£17,920
£1,493
£25,000
£2,486
£994
£21,520
£1,793
£30,000
£3,486
£1,394
£25,120
£2,093
£35,000
£4,486
£1,794
£28,720
£2,393
£40,000
£5,486
£2,194
£32,320
£2,693
£45,000
£6,486
£2,594
£35,920
£2,993
£50,000
£7,486
£2,994
£39,520
£3,293
£60,000
£11,432
£3,211
£45,357
£3,780
£70,000
£15,432
£3,411
£51,157
£4,263
Figures use 2026/27 tax bands and National Insurance rates, and assume the standard tax code with no other deductions. Actual take-home pay will vary with your tax code, pension contributions, and other deductions — use a dedicated calculator for a precise figure.