What comes off gross pay
GOV.UK's payslip rules ask for both ends of the sum: earnings before and after deductions, plus the amount of each deduction that changes from pay to pay. Net pay is the after figure, the one that lands in the bank account.
The usual deductions, in the order payroll applies them:
- Salary sacrifice, which lowers the pay that both tax and NI are worked out on, and Payroll Giving, which lowers the pay for tax only
- Income Tax, using the tax code
- Employee National Insurance, on pay above the primary threshold
- Student and postgraduate loan repayments
- Workplace pension contributions not made by salary sacrifice, and other agreed deductions such as a season ticket loan repayment
Net pay on £30,000 in 2026/27
| Line | Working | Year | About a month |
|---|---|---|---|
| Gross pay | £30,000.00 | £2,500.00 | |
| Income Tax | (£30,000 − £12,570) × 20% | £3,486.00 | £290.50 |
| National Insurance | (£30,000 − £12,570) × 8% | £1,394.40 | £116.20 |
| Net pay | £25,119.60 | £2,093.30 |
A monthly payslip will differ by pennies, because PAYE uses the code's monthly tables and NI is tested against £1,048 each month: (£2,500 − £1,048) × 8% = £116.16. A workplace pension or a student loan would come off as well.
Finding net pay on the payslip
Look for Net pay, Take-home pay or Amount paid, usually bottom right and often in bold. It should equal gross pay less the total deductions printed above it, and match the payment into the employee's account. Year-to-date boxes show taxable pay and tax to date, but rarely net pay to date, because net pay is not what HMRC tracks.
Read next
Related terms
Questions
What is the difference between net pay and gross pay?
Gross pay is earnings before anything is taken off. Net pay is what is left after Income Tax, National Insurance, pension, student loan and any other deductions. The payslip must show both.
Is net pay the same as take-home pay?
Yes. Net pay, take-home pay and the amount paid on a payslip all mean the figure the employee receives, after every deduction for that pay period.
Why is my net pay different this month?
Something in the sum changed: hours or overtime, a bonus, a new tax code, an emergency code, a pension change, or a student loan threshold being crossed in that pay period. Compare each line with last month's payslip.
Sources
- GOV.UK: Payslips (read 8 October 2026)
- HMRC: Rates and thresholds for employers 2026 to 2027 (read 8 October 2026)
Figures are for the 2026/27 tax year unless the text says otherwise. This page explains a payroll term; it is general information, not tax or legal advice.