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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:

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 2020/21 tax year is 1250L – if your tax code is different, you might be overpaying or under paying tax. Check this tax code guide or talk to your employer.

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