Pay, explained
Learn how your pay works
Understand the terms on job offers and payslips so you can use a calculator without mistaking an estimate for a guarantee.
Gross vs net pay
Follow money from an advertised salary through deductions to take-home pay.
Read guide →Marginal vs effective tax
Learn why a higher band applies only to the next slice of taxable income.
Read guide →How to read a UK payslip
Locate PAYE, NI, pension, loans, tax codes and year-to-date totals.
Read guide →Start with the question you are trying to answer
“What do I earn?” can mean at least four things: contractual gross salary, taxable pay, cash arriving in your account or the value of the wider package. A useful comparison names the measure before comparing the number.
Planning a monthly budgetStart with expected net pay, then check variable bills and non-payroll costs.
Comparing job offersCompare recurring salary and bonus, expected hours, pension, leave and unavoidable work costs.
Checking a payslipUse the tax code, pay period and year-to-date figures rather than an annual average alone.
Negotiating a raiseLook at the extra net amount, but also whether benefits and pension contributions rise with salary.
Ready to put the terms into practice?
Use the current UK calculator or choose a decision tool for hourly pay, raises and job offers.