Earning a salary of £28,000 in the UK puts you slightly below the national average, but it still offers a comfortable income for many, especially outside of London. In this guide, we’ll break down exactly what you take home after tax, National Insurance (NI), and optional deductions like pensions or student loans.

Gross vs Net Pay: Quick Overview

• Gross annual salary: £28,000
• Tax Code: 1257L (assumed standard for 2025/26)
• Personal Allowance: £12,570 (income you don’t pay tax on)

Let’s see how deductions affect your actual earnings.

Income Tax Breakdown (2025/26)

• You pay 20% on income between £12,571 and £28,000
• Taxable income: £15,430
• Estimated income tax: £3,086 per year

National Insurance (NI) Contributions

For the 2025/26 tax year:

• You pay 9% NI on earnings between £12,570 and £50,270
• Taxable NI income: £15,430
• NI total: ~£1,388.70 per year

Pension Contributions (Optional)

If you’re enrolled in an auto-enrolment pension scheme:

• Assume 5% employee contribution: £1,400/year
• This lowers your taxable income, saving some tax/NI too

Student Loan (If Applicable)

• Plan 2 threshold: £28,470 (you’re under this)
• You won’t repay anything unless you’re on Plan 1 (threshold: £26,065)
• Postgraduate Loan? You start paying after £21,000 at 6%

Your Estimated Take-Home Pay

Without pension or student loan:

• Annual net pay: ~£23,525
• Monthly take-home: ~£1,960

With 5% pension:

• Annual net pay: ~£22,125
• Monthly: ~£1,844

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Want to Get a Personalised Breakdown?

Use our UK Salary Calculator to enter pension, bonus, and loan details. It gives you real-time take-home pay and helps plan better.

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Bottom Line: On a £28,000 salary, you take home just under £2,000 per month after taxes. Pension contributions reduce your pay slightly, but offer long-term value. Try different combinations with our calculator to find your best setup.