Pay Rise Calculator UK 2025/26 — Take-Home Pay After a Raise

It depends on your tax band. If you are a basic rate taxpayer (income between £12,570 and £50,270), you keep about 68% of any pay rise — 20% goes to income tax and 12% to National Insurance (8% NI plus the effect of losing some personal allowance is not relevant here, but NI and tax combine to roughly 32%). Higher rate taxpayers (over £50,270) keep about 58%, since the rate jumps to 40% tax + 2% NI = 42% deducted. Use this calculator to see the exact figure for your salary.

To calculate a salary increase percentage: divide the pay rise amount by your old salary and multiply by 100. For example, a £2,000 rise on a £35,000 salary is (£2,000 ÷ £35,000) × 100 = 5.7%. This calculator works in both directions — enter a percentage to find the £ amount, or enter a £ amount to see the equivalent percentage.

A cost-of-living pay rise typically tracks inflation (CPI), often 2-4% in a typical year. A merit or promotion-related rise is usually 5-15%, while a role change or counter-offer can be 15% or more. Whatever the percentage, what matters most is the take-home increase after tax — a 10% rise on £30,000 nets less in absolute terms than a 5% rise on £80,000, even though the percentage is lower.

Only the portion of your salary above a threshold is taxed at the higher rate — moving into the 40% band does not mean your whole salary is taxed at 40%. For example, if a rise takes you from £49,000 to £52,000, only the £1,730 above £50,270 is taxed at 40% (plus 2% NI); the rest stays at 20% + 8%. This calculator shows the exact blended effect on your take-home pay.

A 5% pay rise on £35,000 is £1,750, taking your salary to £36,750. After tax and NI (2025/26 rates, basic rate band), your take-home pay increases by roughly £1,190 per year, or about £99 per month — approximately 68% of the gross rise. Use this calculator for the precise figure including your specific salary and tax position.

Yes. If your pension contribution is a percentage of salary, it increases automatically with a pay rise, which slightly reduces the take-home increase shown here (this calculator does not include pension or student loan deductions). Student loan repayments (Plan 1, 2, 4, or 5) are 9% of income above the relevant threshold, so a pay rise that takes you over the threshold — or further above it — will reduce your net increase further. Check your specific plan threshold on the gov.uk student finance pages.