New Graduate First Job: Take-Home Pay on GBP 28,000 in 2026/27
A new graduate earning GBP 28,000 with a Plan 5 student loan keeps roughly GBP 23,000 a year after income tax, National Insurance and loan repayments. Here is the full breakdown for 2026/27.
Your first graduate job comes with a headline salary, but the figure that hits your bank account is smaller. Income tax, National Insurance and student loan repayments all come out first. This case study breaks down a GBP 28,000 starting salary for 2026/27, with a Plan 5 student loan.
Income tax on GBP 28,000
For 2026/27 the Personal Allowance is GBP 12,570, so the first GBP 12,570 is tax free. The rest is taxed at the 20% basic rate (assuming you live in England, Wales or Northern Ireland).
- Taxable income: GBP 28,000 minus GBP 12,570 = GBP 15,430
- Income tax: GBP 15,430 x 20% = GBP 3,086
National Insurance
Class 1 employee NI is 8% on earnings between GBP 12,570 and GBP 50,270.
- NI-able earnings: GBP 28,000 minus GBP 12,570 = GBP 15,430
- National Insurance: GBP 15,430 x 8% = GBP 1,234.40
Student loan: Plan 5
Most English undergraduates who started from August 2023 are on Plan 5. The threshold is GBP 25,000 and you repay 9% of income above it.
- Income over threshold: GBP 28,000 minus GBP 25,000 = GBP 3,000
- Repayment: GBP 3,000 x 9% = GBP 270 a year, around GBP 22.50 a month
Student loan repayments are not a tax, but they leave your pay packet the same way, so they matter for budgeting.
Putting it together
- Gross salary: GBP 28,000
- Income tax: GBP 3,086
- National Insurance: GBP 1,234.40
- Plan 5 student loan: GBP 270
- Total deductions: GBP 4,590.40
Take-home pay: GBP 28,000 minus GBP 4,590.40 = GBP 23,409.60 a year, or roughly GBP 1,951 a month.
How the plans compare on the same salary
The student loan plan you are on changes the repayment, even at the same salary:
- Plan 1 (GBP 26,900 threshold, 9%): GBP 28,000 minus GBP 26,900 = GBP 1,100 x 9% = GBP 99
- Plan 2 (GBP 29,385 threshold, 9%): below threshold, so GBP 0
- Plan 4 (GBP 33,795 threshold, 9%): below threshold, so GBP 0
- Plan 5 (GBP 25,000 threshold, 9%): GBP 270
A graduate on Plan 2 earning GBP 28,000 pays nothing yet, while a Plan 5 graduate on the same salary repays GBP 270. Always check which plan applies to you.
Things to watch as your salary grows
- Auto-enrolment workplace pension contributions will further reduce take-home, but build retirement savings and attract employer top-ups.
- A pay rise past GBP 50,270 moves new income into the 40% higher rate and 2% NI.
- Postgraduate loans repay separately at 6% over GBP 21,000, on top of an undergraduate plan.
To model your exact figure, including your pension and the right loan plan, use the CalcHub salary calculator and confirm the thresholds on gov.uk.
Frequently asked questions
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