Gross and net pay explained
Payslips and official rate pages often use two words that sound similar but mean very different things.
Gross is the amount before income tax, National Insurance, pension or student loan deductions come off.
Net is what actually lands in your bank account after those deductions.
A simple example (not a tax calculation): if a payslip shows £500 gross and £80 income tax plus £20 National Insurance are taken off, the net take-home is £400.
GOV.UK uses the same idea on Check if the tax on your payslip is correct: gross pay is the total before deductions; net pay is the amount after deductions have been taken off.
Statutory Sick Pay and occupational sick pay are paid gross
The published Statutory Sick Pay rates — the lower of £123.25 a week and 80% of average weekly earnings — are gross figures. GOV.UK: Statutory Sick Pay, what you’ll get says SSP is paid by your employer in the same way as your normal wages, and that tax and National Insurance will be deducted. Occupational sick pay (including NHS Agenda for Change and teachers’ Burgundy Book schemes) is also paid gross through payroll. HMRC states that both SSP and occupational sick pay are taxable (EIM76350).
HMRC’s PAYE manual also lists SSP, SMP, Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Neonatal Care Pay as payments that count as earnings for tax. An employer must operate PAYE on them with other pay (PAYE72075).
Why this site’s net figure is only a rough estimate
How much tax comes off a payment depends on your other income in the tax year, your tax code, and whether you pay Scottish income tax. Employee National Insurance is usually calculated on each payday (weekly or monthly), not as a single annual sum. This site’s optional net estimate uses the official 2026/27 income tax bands (including the £12,570 personal allowance and the taper above £100,000, and Scottish bands if you choose Scotland) and Category A employee NI on each week, as if that week were a weekly payday. It does not include pension contributions, student loan repayments, emergency tax codes, or other deductions.
For a figure that can include pension and student loan deductions, use GOV.UK: Estimate your Income Tax for the current year.
Frequently asked questions
What is gross pay?
Gross pay is the amount before deductions come off. On a payslip it is the total before income tax, National Insurance, pension contributions or student loan repayments. GOV.UK describes it as the total before deductions are taken off.
What is net pay?
Net pay is what actually lands in your bank account after those deductions. GOV.UK describes it as the amount you get after deductions have been taken off.
Is Statutory Sick Pay paid gross or net?
The published weekly rate (the lower of £123.25 and 80% of average weekly earnings) is a gross figure. GOV.UK says SSP is paid in the same way as your normal wages, and that tax and National Insurance will be deducted. Occupational sick pay is also taxable and is paid gross through payroll.
Why does take-home depend on my other income?
Income tax is worked out on your total income for the tax year, after the personal allowance (currently £12,570 for most people, tapered above £100,000). The same £500 of sick or maternity pay can have more tax taken off if you are already a higher-rate taxpayer than if it is your only income. Employee National Insurance is calculated on each payday, not on the whole year, for most employees.
Does this site deduct pension contributions or student loan repayments?
No. The optional rough take-home estimate uses only 2026/27 income tax and employee Class 1 National Insurance (category A), with the standard personal allowance. For a figure that can include pension and student loan deductions, use the official GOV.UK tool: Estimate your Income Tax for the current year.