Take-home pay

Take-home pay is the pay that you receive from your employer after they’ve taken off taxes and other deductions.

What your employer deducts from your salary:

• Income Tax
• National Insurance
• Student loan repayments
• Pension contributions

In other words, take-home pay is what you’re left with from your salary each month.

A few things you need to remember about your take-home pay:

• Your employer deducts these through a system called PAYE (Pay As You Earn)
• How much Income Tax your employer deducts is calculated based on your tax code. The most common tax code in the 2024/25 tax year is 1257L – if your tax code is different, you might be overpaying or under paying tax. Check this tax code guide or talk to your employer