Salary Comparison
Compare Two Salaries
Compare two salaries side by side — including pension, tax code, bonus, student loans, salary sacrifice, and more. Perfect for evaluating a new job offer or negotiating a raise.
Income Details
Income Details
Salary Comparison
Understanding the real difference
The headline salary is just the starting point
Two salaries that look £5,000 apart on paper can end up much closer after tax, or much further apart once total package is factored in. The numbers that hit your bank account are what count.
Tax changes the gap
A salary increase that crosses a tax threshold delivers less take-home than the gross difference suggests. The calculator shows you exactly what both salaries pay after all deductions.
Benefits add up fast
Employer pension, private healthcare, bonus, car allowance and remote working savings can be worth thousands per year on top of the headline figure.
Location matters
The same salary means a very different standard of living depending on where you live. A lower salary outside London can leave you better off once rent, commuting and costs are accounted for.
Beyond the gross salary
Total remuneration can look very different from headline pay once benefits are included. A role paying £5,000 less can be worth more overall.
- Employer pension: a 10% contribution on a £50,000 salary is worth £5,000 a year before any investment growth
- Bonus: guaranteed vs discretionary bonuses should be weighted accordingly when comparing roles
- Private healthcare: typically worth £500 to £2,000 per year depending on cover level
- Car allowance: usually paid as taxable cash or via a company car scheme, adding meaningful value for higher mileage roles
- Remote working: no commute can save £2,000 to £5,000 annually, plus reclaimed hours
- Annual leave: each additional day of leave above 25 is worth roughly 0.38% of annual salary
Regional pay and cost of living
A £60,000 salary in London and a £45,000 salary in Leeds do not represent the same standard of living. Rent alone can absorb the entire difference.
- London weighting is typically £3,000 to £6,000, rarely enough to offset the true cost premium
- Tax and NI are identical regardless of location, so the net pay gap is purely about what that money buys
- Hybrid roles with London pay and non-London living costs often represent the highest real-terms income
Key salary thresholds
Crossing certain thresholds dramatically changes how much of each extra pound you keep. A salary just above one of these points can deliver less take-home than one just below.
- 1£50,270: higher rate income tax begins and NI drops from 8% to 2%. Each extra pound above this threshold is taxed at 42% combined
- 2£60,000: Child Benefit is fully withdrawn for those with children. For a family with two children this represents around £2,500 in lost benefit per year
- 3£100,000: the personal allowance begins to taper at £1 for every £2 earned above this point, creating an effective 60% marginal rate between £100k and £125,140
Changing jobs vs an internal rise
External offers typically need to be meaningfully higher to justify the move. Internal promotions often have less friction and faster threshold impact.
- External moves often require 15 to 20% more gross salary to offset lost pension, benefits, notice risk and the learning curve cost of a new role
- An internal promotion from £48,000 to £52,000 crosses the higher rate threshold: net take-home rises by around £1,500 less than the gross £4,000 increase
- Salary sacrifice schemes at the new employer can increase net pay further by reducing taxable income below thresholds
- Counter-offers from your current employer often maintain existing benefits and pension, making them worth comparing at total package level
Educational guidance only. Not financial or employment advice. Figures are based on 2026/27 UK tax rates and are for England, Wales and Northern Ireland unless stated. Tax thresholds, benefit tapering and NI rates are subject to change. Benefit valuations are illustrative. Speak to a qualified adviser before making major employment or financial decisions.
Compare offers with better tax context
The take-home pay guide explains why two salaries can land very differently after tax, pension and student loan deductions.