How much extra take-home pay do I get from a pay rise in the UK?

It depends on your tax band. A basic rate taxpayer gets around 72p extra in take-home for every £1 of pay rise. A higher rate taxpayer keeps around 58p per extra £1. For example, a 5% rise on a £35,000 salary adds roughly £105/month net.

What salary increase do I need to keep up with inflation in the UK in 2026?

To maintain real purchasing power, your gross pay rise needs to match or exceed the inflation rate. If CPI is running at 3%, you need at least a 3% pay rise to stand still in real terms. After tax, you actually need a slightly higher gross rise to offset inflation on your net income.

UK Pay Raise Calculator 2026/27 · See Your New Take-Home Pay

Q: Is a 5% pay rise worth it after tax in the UK?

Yes, a pay rise always increases your take-home pay. A 5% rise on £35,000 (to £36,750) adds approximately £105/month net. However, if inflation exceeds 5%, your real purchasing power has still fallen. Compare your pay rise to the current inflation rate to assess its real value.

Old Annual Salary

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New Annual Salary

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Gross Increase / Year

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Old Monthly Take-Home

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New Monthly Take-Home

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Net Monthly Increase

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Net Annual Increase

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Effective % Take-Home Gain

Enter your salary and raise to see your new take-home pay.

Before / After Comparison (Monthly)

Item	Before	After	Change

Monthly Pay Breakdown: Before vs After

Understanding Your Pay Rise

A pay rise always increases your take-home pay · but the gross increase and the net increase differ because of marginal tax rates. If your raise pushes your income into a higher tax band, the extra earnings above the threshold are taxed at the higher rate.

Example: If your salary rises from £48,000 to £53,000, the first £2,270 of the rise is in the basic rate band (taxed at 20% + 8% NI = 28%) and the remaining £2,730 is in the higher rate band (taxed at 40% + 2% NI = 42%). Your net gain is less than the gross increase, but you are always better off.

The real value of your raise: To understand the true value, also consider inflation. If your pay rise is 3% and inflation is 4%, your real purchasing power has actually fallen by approximately 1% despite the nominal increase. Use the Inflation Calculator to check the real value of your pay.

Pay Rise · Extra Take-Home Pay After Tax 2026/27

How much extra you actually receive each month after income tax and NI. England · Standard tax code.

Current Salary	Pay Rise %	New Salary	Extra Monthly Gross	Extra Monthly Net	Real Gain (after tax)
£25,000	5%	£26,250	£104	£75	72%
£25,000	10%	£27,500	£208	£150	72%
£35,000	5%	£36,750	£146	£105	72%
£35,000	10%	£38,500	£292	£210	72%
£50,000	5%	£52,500	£208	£121	58%
£50,000	10%	£55,000	£417	£242	58%
£70,000	5%	£73,500	£292	£169	58%
£70,000	10%	£77,000	£583	£338	58%

Pay Raise Calculator FAQs

How much extra take-home pay do I get from a pay rise?

Basic rate taxpayers keep around 72p of every extra £1 after 20% tax and 8% NI. Higher rate taxpayers keep around 58p per £1. A 5% rise on £35,000 adds roughly £105/month net · on £50,000 it adds around £121/month net once the higher rate applies to part of the increase.

Is a 5% pay rise worth it after tax in the UK?

Yes · a pay rise always increases your take-home. But the net gain is smaller than the gross rise. A 5% rise on £35,000 adds £1,750 gross but only around £1,260 net per year. Whether it beats inflation depends on the current CPI rate · if inflation is above 5%, your real purchasing power has still fallen.

What pay rise do I need to beat inflation in the UK in 2026?

To maintain real purchasing power, your gross pay rise must at least match CPI inflation. If inflation is running at 3%, you need a minimum 3% rise to stand still. After tax, you technically need a slightly higher gross rise to offset inflation on your net income · use the Inflation Calculator on this site to see the real impact.

How does salary sacrifice affect a pay rise?

If you contribute to a pension via salary sacrifice, your taxable pay is lower, which can mean a pay rise keeps you in a lower tax band for longer. Increasing your pension contribution percentage alongside a pay rise also means more goes into your pension with both you and your employer paying more · amplifying the long-term benefit of the rise.

UK Pay Raise Calculator 2026/27

Pay Rise · Extra Take-Home Pay After Tax 2026/27

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