Gross Pay vs Net Pay: What Is the Difference?
Gross pay is what you earn before anything comes off. Net pay, or take-home pay, is what reaches your bank account.
The difference in one line
Gross pay is your salary or wages before deductions. Net pay is what is left after Income Tax, National Insurance, pension contributions, student loan repayments and any other deductions.
What comes off
- Income Tax on pay above your Personal Allowance of £12,570.
- National Insurance, 8% on earnings between £12,570 and £50,270.
- Workplace pension contributions, usually a percentage of your pay.
- Student loan repayments, 9% above the threshold for your plan.
Which figure to use
Job adverts and contracts usually quote gross pay. Your bills and budget run on net pay. Work out net pay from gross with the take-home pay calculator, or work backwards with the net to gross calculator.
This guide is general information, not financial or legal advice. Rates checked 8 October 2026 against GOV.UK.
Frequently asked questions
Is salary quoted gross or net?
Almost always gross, which is before tax and other deductions.
How do I work out net pay?
Take off Income Tax, National Insurance and any pension and student loan deductions from your gross pay. The calculator does this for you.
Related
- Take-Home Pay Calculator
- Net to Gross Salary Calculator
- How to Read Your Payslip: Every Line Explained
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.