Pay Rise Calculator United Kingdom 2026-27
About to start a new job, or just want to know what you actually take home.
Estimate a UK pay rise after tax with GBP salary, income tax, National Insurance, pension contributions, and monthly take-home impact.
United Kingdom Pay Rise Notes
UK pay rises change gross salary, PAYE tax, National Insurance, pension contributions, student-loan deductions where relevant, and monthly take-home pay.
Use the GBP version to compare annual and monthly impact before weighing inflation, promotion scope, salary sacrifice, or negotiation options.
This page uses UK income-tax, National Insurance, pension, and monthly-pay language rather than Australian National Insurance and pension contributions wording.
UK-specific treatment for pay rise: figures are framed in pounds, with British household or business wording and the assumptions commonly seen in PAYE, HMRC, mortgage, pension, and consumer-credit contexts.
Watch for UK markers in the page copy and inputs: HMRC, PAYE, National Insurance, pension contributions, stamp duty land tax, miles, APR, part-exchange, council tax, VAT, and GBP-based totals.
The result should be read as a United Kingdom estimate, so compare it with UK provider quotes, HMRC or GOV.UK guidance, lender affordability rules, devolved-nation differences, or regulated advice where needed.
Uses 2026-27 HMRC rates. Net increase = gross rise × (1 − marginal rate − NI).
Select the question that matches where you are right now.
Use this calculator to plan and model your financial situation.
Compare scenarios by adjusting inputs. Use the precision bar to reveal more detail. Results update in real time as you type.
Not professional financial advice, not a guarantee of any specific outcome, and not a substitute for qualified advice for significant decisions.
All calculations run entirely in your browser using standard formulas. No data is sent to any server.
The inputs that most influence this result are shown in the breakdown above. Even small changes to key variables can have a significant compound effect over time.
Longer periods amplify both growth and cost. Starting one year earlier or later can change a financial outcome by more than you expect.
Even a 1% change in rate can materially change the outcome over a long period. Use Standard or Advanced mode to model rate sensitivity.
Most financial variables have a non-linear relationship with the result — they compound. The sensitivity table in Advanced mode shows this clearly.
To improve this result, focus on the inputs with the highest leverage. Small changes to the right variable often produce much larger outcomes than large changes to less important ones.
Adjust inputs one at a time. The one that moves the result most is your binding constraint — focus effort there first.
Use the Scenario A/B feature in Advanced mode to compare two situations side by side.
Many financial decisions benefit from timing. Starting earlier, fixing a rate at the right moment, or clearing a debt before applying for new credit can each produce significant improvements.
Depending on what you are planning, these are the natural next steps after reviewing this result.
This calculator shows one part of a financial decision. The related calculators below help you model adjacent factors.
Switch to Standard or Advanced mode and use the scenario comparison tool to model best, expected, and worst case.
For decisions involving significant amounts of money, use this result as a starting point for a conversation with a qualified financial advisor.
How a pay rise affects your take-home pay
Why a pay rise is worth less than you think
A pay rise is taxed at your marginal rate — only the additional income above your current salary is taxed at the higher rate, not your full income. On a higher-rate salary (40% tax + 2% National Insurance = 42%), a £10,000 pay rise produces approximately £5,800 in additional take-home pay.
| Current salary | Pay rise | Gross new salary | Net increase/year | Net increase/month |
|---|---|---|---|---|
| £60,000 | £5,000 | £65,000 | £2,900 | £242 |
| £80,000 | £5,000 | £85,000 | £2,900 | £242 |
| £100,000 | £10,000 | £110,000 | £3,800 | £317 |
| £120,000 | £10,000 | £130,000 | £5,300 | £442 |
| £150,000 | £15,000 | £165,000 | £7,950 | £663 |
Pay rise impact examples — 2026-27 HMRC rates
These figures show the net after-tax increase for different pay rise scenarios.
| Salary | Pay rise (%) | Gross increase | Net increase/year | Tax on rise |
|---|---|---|---|---|
| £70,000 | 5% | £3,500 | £2,030 | £1,470 (42%) |
| £80,000 | 5% | £4,000 | £2,320 | £1,680 (42%) |
| £100,000 | 5% | £5,000 | £1,900 | £3,100 (62% PA taper) |
| £100,000 | 10% | £10,000 | £3,800 | £6,200 (62% PA taper) |
| £130,000 | 5% | £6,500 | £3,445 | £3,055 (47%) |
How pay rises interact with UK tax brackets
Only the marginal portion is taxed higher
the United Kingdom uses a progressive tax system — only income above each bracket threshold is taxed at that bracket's rate. A salary rise that pushes you from £134,999 to £140,000 does not mean you pay 37% on your entire income — only on the £5,001 above £135,000.
The student loan threshold
If you have a Plan 2 student loan, repayments are 9% of income above the £27,295 threshold (2026-27). A pay rise above the threshold increases your repayment by 9% of the extra income — a rise from £30,000 to £35,000 adds about £450 in annual student loan repayment, partly offsetting the take-home gain.
2026-27 tax bracket reference
| Taxable income | Marginal rate | Effective rate |
|---|---|---|
| £0–£12,570 | 0% (Personal Allowance) | 0% |
| £12,571–£50,270 | 20% (basic rate) | Variable |
| £50,271–£100,000 | 40% (higher rate) | Variable |
| £100,001–£125,140 | 40% + PA taper (60%) | 62% with NI |
| Above £125,140 | 45% (additional rate) | Variable |
Is your pay rise actually a pay rise? Inflation and real wages
Nominal vs real pay rise
A pay rise below the inflation rate is a real pay cut — your salary buys less than before even though the number is higher. Real pay rise = pay rise % − inflation rate %.
| Pay rise | Inflation (CPI) | Real pay change | Verdict |
|---|---|---|---|
| 2% | 3% | -1% | Real pay cut |
| 3% | 3% | 0% | Break-even |
| 5% | 3% | +2% | Modest real rise |
| 3% | 4.7% (2024) | −1.7% | Real pay cut |
| 7% | 4.7% (2024) | +2.3% | Real pay rise |
The last few years in the United Kingdom
UK wage growth averaged 4–4.5% in 2023-24, while CPI peaked at 7.8% in late 2022 and remained above 4% through 2023. Many workers experienced real wage cuts during this period despite receiving nominal pay rises.
How to negotiate a pay rise effectively in the United Kingdom
Timing
Best times to negotiate: after a significant achievement, during your annual review, when you have a competing offer, or when you take on additional responsibilities. Avoid negotiating during company financial difficulties or immediately after a poor performance period.
Researching your market rate
Use salary surveys from Reed, LinkedIn, Robert Half, Hays, or industry associations. The ONS Average Weekly Earnings shows industry-level growth. Find the market rate for your specific role, experience level, and location — not just the broad job title.
The effective ask
Frame a pay rise request around value delivered, market rates, and future contribution — not personal financial need. 'The market rate for my role is £X; I have delivered Y and Z results; I am seeking £A' is more effective than 'I need more money because of rising costs.' Have specific figures ready; ranges suggest you will accept the lower end.
UK pay rise take-home 2026-27
Pay rise impact table
| Current → New | Gross rise | Tax on rise | Net increase |
|---|---|---|---|
| £30k → £32k | £2,000 | £560 (28%) | £1,440 |
| £40k → £45k | £5,000 | £1,400 (28%) | £3,600 |
| £50k → £55k | £5,000 | £2,100 (42%) | £2,900 |
| £75k → £80k | £5,000 | £2,100 (42%) | £2,900 |
| £95k → £105k (PA taper) | £10,000 | £6,200 (62% eff) | £3,800 |
| £130k → £140k | £10,000 | £4,700 (47%) | £5,300 |
£100k tax trap on pay rises
Rising through £100k-£125,140: Personal Allowance tapers, 62% effective marginal rate. Pension sacrifice retains PA.
Real-terms raise
UK CPI 2.5%. 3% nominal raise = 0.5% real. Below inflation = pay cut in real terms. Aim for inflation+2% minimum.
UK salary negotiation tips
Research market rate
Glassdoor, LinkedIn salary, Indeed, TotalJobs. 3-5 data points for role in location. UK salary databases by experience level.
Ask for range, not specific figure
Request 20-30% above current. Employer counters 10-15%. Middle: 15-20% raise. Research supports range.
Timing matters
Annual review. After major win. New role offer. Not after bad news or team restructure.
Beyond salary
Pension match (+5% = ~10% salary equiv). PTO. Remote/flexible work. Development budget. Title for future CV.
UK negotiation stats
63% of UK employees never negotiate initial offer. Those who do: 7-10% average increase. Women negotiate 4x less than men. Compounds across career.
Pension boost hack
Raise AS pension: employer saves 15% NI, often shares. You save income tax + NI. £5k salary vs £5k pension at 42% rate: pension wins £2,100.
UK NI impact on pay rises
NI changes at thresholds
Below £12,570: no NI. £12,570-£50,270: 8%. Above £50,270: 2%. Pay rise crossing £50,270: NI drops from 8% to 2% on the excess — 'stealth' saving.
Employer NI 15% from 2025
Raised from 13.8% to 15%, threshold lowered to £5,000 (April 2025). Explains 2025 wage restraint — employer cost of employment up.
Salary sacrifice savings
Saves employee NI (8%/2%) AND employer NI (15%). Many employers share full 15% back as extra pension. £5k salary sacrifice = £5k-£6k effective pension.
Frequently asked Frequently asked questions
How much of a pay rise do I actually take home?
Only the additional income above your current salary is taxed at your marginal rate. At a higher-rate salary (40% tax + 2% National Insurance = 42%), a £10,000 pay rise produces approximately £5,800 more take-home pay. The effective after-tax value is 58% of the gross rise. Note the £100k–£125,140 band, where the Personal Allowance taper lifts the effective rate to 62%.
Does a pay rise push me into a higher tax bracket?
the United Kingdom's progressive tax system means only income above each bracket is taxed at that rate. A rise from £130,000 to £140,000 puts £5,000 into the 37% bracket — only that £5,000 is taxed at 37%, not your entire salary. The concept of being 'pushed into a higher bracket' causing a net negative outcome is a myth.
Does a pay rise trigger higher student loan repayments?
Yes — student loan repayments are 9% of income above your plan threshold (£27,295 for Plan 2 in 2026-27). A pay rise increases your repayment by 9% of the extra income above the threshold. Moving from £85,000 to £95,000 adds about £900 in annual student loan repayment, reducing the net benefit of the pay rise.
What is a realistic pay rise to ask for in the United Kingdom?
Average wage growth in the United Kingdom is currently around 3.5–4.5% (2025). CPI is moderating toward 3%. A 'cost of living' rise should match or exceed CPI. A rise for performance, promotion, or market alignment typically ranges from 5–15%. Salary increases above 20% are uncommon outside of significant role changes or bidding wars.
Should I tell my employer about a competing offer?
Only if you are genuinely willing to leave. Counter-offers are common in tight labour markets, but accepting one can affect how management perceives your loyalty. If you use a competing offer as leverage, be prepared to follow through. Loyalty bonuses or spot increases without genuine role improvement often have short-term effects.
Where these figures come from
Income figures on this page are drawn from HMRC (PAYE tax and National Insurance), GOV.UK (statutory rates), and the Office for National Statistics (earnings).
- Income Tax rates & Personal Allowance — GOV.UK — Income Tax rates and Personal Allowances.
- National Insurance rates — GOV.UK — National Insurance rates.
- National Minimum & Living Wage — GOV.UK — National Minimum Wage and National Living Wage rates.
- UK average earnings — ONS — Average weekly earnings.
- Student loan repayment thresholds — GOV.UK — Repaying your student loan.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.