A graduate job advertised at £35,000 a year does not mean £35,000 lands in your bank account.
Your gross salary is your pay before deductions. Your net salary is what you receive after things such as Income Tax, National Insurance and student loan repayments.
For the 2026/27 tax year in England, the main deductions are:
| Income Tax | 20% on most earnings between £12,570 and £50,270 |
| National Insurance | 8% on most earnings between £12,570 and £50,270 |
| Plan 5 student loan | 9% of earnings above £25,000 |
| Workplace pension | Depends on your employer and pension scheme |
What does that look like in practice?
Approximate figures below assume a standard tax code, a Plan 5 student loan and no pension contribution:
| Gross salary | Approx. annual take-home | Approx. monthly take-home |
|---|---|---|
| £25,000 | £21,520 | £1,793 |
| £30,000 | £24,670 | £2,056 |
| £35,000 | £27,820 | £2,318 |
| £40,000 | £30,970 | £2,581 |
| £50,000 | £37,270 | £3,106 |
Your actual payslip may differ because of pension contributions, bonuses, benefits, tax-code changes or other deductions.
Student loan repayments are only charged above the threshold
On a £35,000 salary under Plan 5, you do not pay 9% of the full £35,000.
You repay 9% of:
£35,000 − £25,000 = £10,000
That gives a student loan repayment of about £900 a year, or £75 a month.
Don't budget using the advertised salary
When comparing graduate jobs or deciding how much rent you can afford, use your expected monthly take-home pay, not the headline salary.
A £35,000 graduate salary sounds like almost £3,000 a month when divided by 12. After the main compulsory deductions, it is closer to £2,300 a month before pension contributions.
That is the number your post-university budget should be built around.
