Graduate Salary After Tax 2026/27: Take-Home Pay Tables for GBP 25k-GBP 45k Starters

2026 graduate starting salaries by sector

Graduate starting salaries in the UK vary significantly by sector, with tech and finance at the premium end and public sector (teaching, NHS) at the lower end.

Tech and software engineering

Average starting salary: GBP 35,000-40,000

Tech graduates from top universities or with strong portfolios can command higher entry salaries.

• Big Tech (Google, Meta, Amazon, Microsoft): GBP 50,000-60,000 (with stock/bonus)
• Fintech startups: GBP 35,000-45,000
• Mid-size tech companies: GBP 32,000-40,000
• Small startups: GBP 25,000-35,000

Tech salaries have normalized after the pandemic boom. Entry-level positions emphasize learning over pay, but competitive candidates negotiate above base.

Finance and banking

Average starting salary: GBP 30,000-40,000

Finance varies significantly by firm and role. Investment banking is highest, retail banking lower.

• Investment banking (analyst): GBP 45,000-70,000 (+ bonus 50-100% of base)
• Consulting firms: GBP 35,000-45,000 (+ discretionary bonus)
• Corporate finance roles: GBP 32,000-40,000
• Accounting firms (graduate trainee): GBP 25,000-32,000 (+ professional fees covered)
• Insurance: GBP 28,000-35,000

Finance attracts graduates with strong mathematics, but entry salaries reflect the training-intensive nature of roles.

Engineering

Average starting salary: GBP 28,000-35,000

Engineering pays below finance and tech but is stable and grows quickly.

• Civil engineering: GBP 26,000-32,000
• Electrical/mechanical engineering: GBP 28,000-35,000
• Software/hardware engineering: GBP 32,000-40,000 (overlaps with tech)
• Petrochemical engineering: GBP 30,000-38,000
• Graduate programs (fast-track): GBP 32,000-40,000 + rapid progression

Engineering offers strong salary progression; engineers often see 10%+ annual raises in early years.

Teaching

Average starting salary: GBP 30,000-38,000 (depending on subject and region)

Teachers follow a defined pay scale. Main Pay Scale (MPS) starts at GBP 30,000-32,000 depending on region (London pay band higher).

• England (standard): GBP 30,627 (London: GBP 32,157)
• Secondary maths/physics: GBP 30,627 (shortage subjects, no premium in base but recruitment bonuses up to GBP 15,000)
• Primary teachers: GBP 30,627
• Qualified Teacher Status (QTS) requirements: Most graduates must complete QTS before paid role

Shortage subjects (maths, physics, chemistry, languages) sometimes include recruitment bonuses or higher first-year pay.

NHS

NHS Band 5 (entry-level nursing, AHP, therapist roles):

• Starting salary: GBP 32,934 (2026/27 NHS pay scale)
• Band 5 range: GBP 32,934-GBP 41,787 (progression through band)
• Increment: Annual increment until top of band (usually 4 years of progression)

NHS Band 4 (support roles, healthcare assistants):

• Starting salary: GBP 24,169-GBP 27,093

NHS salaries are fixed by pay bands, with transparent progression. Band 5 nurses are entry-level registered nurses; progression to Band 6 (specialist/senior nurse) requires experience (typically 3-5 years).

Other public sector

• Civil Service (fast-stream graduate): GBP 35,000-40,000 (competitive recruitment)
• Police (probationer): GBP 27,000-GBP 31,000
• Prison officer: GBP 26,000-GBP 29,000
• Social work: GBP 28,000-GBP 33,000

Public sector offers job security and pension benefits but lower salaries than private sector.

Graduate take-home pay: Detailed tables

GBP 25,000 salary (lowest quintile)

With Student Loan Plan 2 (9% above GBP 27,295):

• Repayment: GBP 0 (salary below threshold)
• Net pay: GBP 21,524 (unchanged)

With pension auto-enrolment (4%):

• Employee contribution: GBP 1,000 (reduces taxable income)
• Adjusted income tax: GBP 2,286 (reduced due to contribution relief)
• Adjusted NI: GBP 970
• Net pay (after pension): GBP 21,254 (GBP 270 less net; gross deduction GBP 1,000, but GBP 200 tax relief + GBP 40 NI relief)

GBP 30,000 salary (common graduate entry)

With Student Loan Plan 2 (9% above GBP 27,295):

• Repayment: (GBP 30,000 - GBP 27,295) × 9% = GBP 243
• Monthly: GBP 20
• Net pay after SL: GBP 23,880 (GBP 2,990 monthly)

With Student Loan Plan 5 (9% above GBP 25,000):

• Repayment: (GBP 30,000 - GBP 25,000) × 9% = GBP 450
• Monthly: GBP 38
• Net pay after SL Plan 5: GBP 23,673 (GBP 1,973 monthly)

With pension auto-enrolment (4%):

• Employee contribution: GBP 1,200
• Tax relief on contribution: GBP 240
• NI relief on contribution: GBP 96 (8%)
• Effective net cost: GBP 864
• Net pay (after pension): GBP 23,259 (GBP 1,938 monthly)

GBP 35,000 salary (mid-range graduate)

With Student Loan Plan 2 (9% above GBP 27,295):

• Repayment: (GBP 35,000 - GBP 27,295) × 9% = GBP 695
• Monthly: GBP 58
• Net pay after SL: GBP 27,041 (GBP 2,253 monthly)

With Student Loan Plan 5 (9% above GBP 25,000):

• Repayment: (GBP 35,000 - GBP 25,000) × 9% = GBP 900
• Monthly: GBP 75
• Net pay after SL Plan 5: GBP 26,836 (GBP 2,236 monthly)

With pension auto-enrolment (4%):

• Employee contribution: GBP 1,400
• Tax relief: GBP 280
• NI relief: GBP 112
• Effective net cost: GBP 1,008
• Net pay (after pension): GBP 26,728 (GBP 2,227 monthly)

GBP 40,000 salary (upper range graduate)

With Student Loan Plan 2 (9% above GBP 27,295):

• Repayment: (GBP 40,000 - GBP 27,295) × 9% = GBP 1,143
• Monthly: GBP 95
• Net pay after SL: GBP 30,206 (GBP 2,517 monthly)

With Student Loan Plan 5 (9% above GBP 25,000):

• Repayment: (GBP 40,000 - GBP 25,000) × 9% = GBP 1,350
• Monthly: GBP 113
• Net pay after SL Plan 5: GBP 29,999 (GBP 2,500 monthly)

With pension auto-enrolment (4%):

• Employee contribution: GBP 1,600
• Tax relief: GBP 320
• NI relief: GBP 128
• Effective net cost: GBP 1,152
• Net pay (after pension): GBP 30,197 (GBP 2,516 monthly)

GBP 45,000 salary (highest graduate entry)

With Student Loan Plan 2:

• Repayment: (GBP 45,000 - GBP 27,295) × 9% = GBP 1,594
• Net after SL: GBP 33,368 (GBP 2,781 monthly)

With Student Loan Plan 5:

• Repayment: (GBP 45,000 - GBP 25,000) × 9% = GBP 1,800
• Net after SL Plan 5: GBP 33,162 (GBP 2,764 monthly)

Student Loan Plan 2 vs Plan 5: Impact on take-home

Plan 2 (most graduates 2013-2022):

• Repayment threshold: GBP 27,295
• Repayment rate: 9% of earnings above threshold
• Forgiveness: 30 years

Plan 5 (graduates from 2023 onwards):

• Repayment threshold: GBP 25,000 (lower, steeper)
• Repayment rate: 9% of earnings above threshold
• Forgiveness: 40 years

The lower Plan 5 threshold means recent graduates pay more student loan monthly.

Impact comparison (GBP 35,000 salary):

Plan 5 graduates from 2035 onwards repay in full within 40 years (due to lower repayment threshold raising total cost), while Plan 2 graduates repay within 30 years.

Pension auto-enrolment impact

UK employers must automatically enrol employees aged 22+ into a pension scheme. The minimum contribution is:

• Employer: 3% (can be higher)
• Employee: 4% (above employer's 3% tops-up)
• Total: Minimum 8% (though many schemes exceed this)

This means a GBP 30,000 graduate will have GBP 1,200/year (GBP 100/month) contributed to pension automatically.

After-tax impact of pension contribution

Pension contributions reduce taxable income, providing tax relief. A 4% employee contribution (GBP 1,200 on GBP 30,000) reduces:

• Income tax by GBP 240 (4% × GBP 1,200 at 20% rate)
• National Insurance by GBP 96 (8% × GBP 1,200)
• Total benefit: GBP 336

Net cost to employee: GBP 1,200 - GBP 336 = GBP 864/year (not GBP 1,200)

This means pension contributions are "cheaper" than they appear because of tax relief. For a basic rate taxpayer, 4% pension contribution costs only 2.4% of salary net of tax relief.

Comparing sectors: Take-home by job type

GBP 30,000 salary (common entry point across sectors)

NHS and teaching start slightly higher due to defined pay scales. Tech/finance often start at defined entry salaries.

Real-world budget: Graduate living costs 2026

Typical graduate spending (GBP 30,000 salary, net GBP 23,880 with SL Plan 2):

A graduate at GBP 30,000 (GBP 1,990 monthly net) can cover essential costs and save GBP 100-200/month if careful with spending. Room for socialising, but tight budget in expensive cities.

GBP 35,000 salary example:

• Monthly net (no SL): GBP 2,311
• Essential costs: GBP 1,280-1,850
• Remaining for savings/discretionary: GBP 461-1,031

Much more comfortable at GBP 35,000+, with room for savings and social activity.

Salary progression: Years 1-5 as a graduate

Graduate salaries typically progress rapidly in early years:

Tech trajectory (common pattern):

• Year 0 (entry): GBP 35,000
• Year 1: GBP 38,000 (8% raise)
• Year 2: GBP 42,000 (10% raise)
• Year 3: GBP 46,000 (9% raise)
• Year 5: GBP 52,000-60,000 (move to mid-level role)

Finance trajectory:

• Year 0: GBP 30,000 (trainee)
• Year 1: GBP 32,000 (qualified)
• Year 2: GBP 36,000 (bonus increases)
• Year 3: GBP 40,000 (senior analyst)
• Year 5: GBP 50,000-70,000 (promoted)

Teaching trajectory (fixed pay scales):

• Year 0-1: GBP 30,627 (MPS 1)
• Year 1-2: GBP 32,111 (MPS 2)
• Year 2-3: GBP 33,596 (MPS 3)
• Year 5+: GBP 38,000+ (upper pay scale or leadership)

Tech and finance offer steeper early progression than public sector, but public sector offers security and pension.

Summary: Graduate salary expectations 2026/27

A 2026 UK graduate can expect:

• Entry salary: GBP 28,000-40,000 depending on sector
• Take-home (GBP 30,000): GBP 23,880/year with student loan (GBP 24,123 without)
• Monthly net: GBP 1,990 (enough for independent living with care)
• Pension deductions: GBP 864/year net (4% employee contribution after tax relief)
• Student loan Plan 2: GBP 243/year (9% of GBP 2,705 above threshold)
• Salary progression: 8-10%/year first 3 years (tech/finance highest, public sector lower but stable)

Use the

to model your specific graduate salary and deductions. Use the to compare Plan 2 and Plan 5 repayment trajectories over 30-40 years.