Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

2k a year pay rise = £66 extra a month!

163 replies

missbunnyrabbit · 31/12/2021 15:11

I'm a teacher and was so excited to go the next point on the scale. Checked my pay today, the first pay with my new salary approved on it, to see I get a grand total of £66 extra a month!

2k sounds like such a lot! But it really isn't after everything is taken off.

Am I being ungrateful?Confused

OP posts:
Thread gallery
9
MamaTutu2 · 31/12/2021 16:20

It’s normally £80 each bracket but I’ve just gone from m6 to ups1 and apparently that is £27 a month increase 😩

BlowDryRat · 31/12/2021 16:25

Funnily enough, earlier on today I was redoing our budget for next year (a wild NYE for me!) and calculated that my first ever bonus will have a 51% deduction (tax, NI, pension contribution and student loan). Yay. It's all very well saying that I'll feel the benefit when I'm pension age but given that we can't afford the pension age we currently have, I don't hold out much hope of ever seeing it.

TheAntiGardener · 31/12/2021 16:33

Doesn’t sound right to me either, op. I think the sum you’re citing is what makes posters assume you’re in the 40% tax bracket. Are there any other possible deductions beyond tax, the @9% pension and student loan?

See what it looks like next month.

milkysmum · 31/12/2021 16:38

It's like that in nursing- you get all excited to go up to the next point in the pay band- only to not really notice it in your monthly pay. - and go up a band if you are already on top of your current band ( well you might as well not bother half the time 🙄)

LondonQueen · 31/12/2021 16:38

I'm less excited to move up the pay scale now! However, we teachers have one of the best pensions around.

BarkminsterBlue · 31/12/2021 16:39

It’s usual for annual increases in teaching to be backdated to 1 September. Has this happened here, meaning that your contributions are higher this month?

Dguu6u · 31/12/2021 16:43

Yes very ungrateful. At least you’re going up in pay scale and your pay isn’t frozen like those of many people working crucial jobs in government

middleofthelittle · 31/12/2021 16:44

@missbunnyrabbit

I'm only on M3, so 27,600ish.

Gross: 2472
NI: 201
Tax: 242
Student loan: 17
Pension (8.6%): 212

After all that I'm left with £66 more than I did before I got the pay rise. Actually it might be £68. Yay. I've been trying to work out if everything is correct so my brain has gone numb.

Difference between 27,600 and 29,600 on the tax, pension and student loan details you've given.

£1044 a year more

2k a year pay rise = £66 extra a month!
Terminallysleepdeprived · 31/12/2021 16:44

Your student loan qill have gone up too. I earn less than you and my loan repayments are double yours so I suspect there are other things you aren't accounting for. You can work it out on the salary calculator but based on repayment stream 1 for student loans the breakdown comes out as attached

2k a year pay rise = £66 extra a month!
SeasonFinale · 31/12/2021 16:44

@missbunnyrabbit

I'm not a higher rate tax payer thoughSad I earn 29,600 Confused
The reality is your pension forma part of your income too! Not everyone has such pension payments and thus benefits!
HummmmBug · 31/12/2021 16:44

@MamaTutu2

It’s normally £80 each bracket but I’ve just gone from m6 to ups1 and apparently that is £27 a month increase 😩
So have I and it worked out £56 for me Hmm I think the student loans differ massively.
ChessieFL · 31/12/2021 16:48

@Goinghome20 you will also get some sort of one off lump sum on top of that £6k. If you live 25 years, which is easily possible, that’s £150k before factoring in any inflation proofing. Add on the value of your lump sum and you could easily be looking at an overall value if £250k. I bet you haven’t paid in anywhere near that amount. It’s likely that you will have recouped your own personal contributions within a few years of retiring.

NannyGythaOgg · 31/12/2021 16:48

Ok

So take off all your standard monthly payments, leaving you with your disposable money. The take off your average regular monthly spend on food etc. so you are left with your disposable income and, apart from inflation, all that spend should stay pretty much the same.

The new money will be a much bigger % of that sum of your disposable income.

Xmasishere10 · 31/12/2021 16:48

I had similar when my I moved into the next pay bracket and realised it’s because it pushed my pension contribution up to 12.5%!

I use salary calculator and it’s always been accurate at predicting my pay. Assuming you graduated post 2012 and 8.6% pension it suggests this :

2k a year pay rise = £66 extra a month!
WreckTangled · 31/12/2021 16:49

That's really rubbish. Similar things happen in the nhs (and I guess police etc too?). The latest nhs 'pay rise' bumped me up a pension band so now I'm actually £20 a month worse off than before the pay rise in my take home pay Confused I'm grateful to have a pension but also I need to be able to eat Grin

viques · 31/12/2021 16:49

@Goinghome20

Well at 54yo I have found out that teachers pensions are actually not that great.

Been teaching for 23 years. 9 years FT, 14 years PT. If I retire at 60 I will get 6k a year and yes our monthly pension contributions have gone up a lot over past 4 years.

Lots of young teachers dont bother now as they need that money for rent, and I kind of wish I hadn't bothered either now.

It’s the PT that does it. I made a mistake in my last couple of years and went down to four days a week not realising how it would affect my pay and pension.

( hell, It was worth it though, the bliss of leaving on a Thursday afternoon......)

GnomeDePlume · 31/12/2021 16:52

If you started your degree course after 2012 and dont have post graduate loans from the figures you have given your salary will go up by £87/month or £1044/year as @middleofthelittle said.

Plug your details into salary calculator.

BigYellowHat · 31/12/2021 16:58

Have you had part of the month on your old pay and part on the new pay? Whenever I get my NHS pay step in July that’s what happens to me and I only see my proper new pay in August.

Original poster
missbunnyrabbit · 31/12/2021 16:59

Thanks for all the replies. I've plugged everything into a few different calculators and there's some variance by 20 or 30 pounds. My NI is higher than it says on the calculators, but then I did the government one specifically for that and it came out right. Also my tax code is 1257L/0, but my tax paid matches the calculators so I'm guessing that's right.

Also I've had the backdated pay, that was included in last months, so this month's pay should be the correct salary.

Sadly it does all seem to be right. I'm just so disappointed!! Never ever thought I would consider touching my pension but....I am. Maybe. Shock

OP posts:
Silvershroud · 31/12/2021 17:02

We are all going to take a hit this coming year (those of us on average pay anyway). Energy prices about an extra £50 per month, council tax about £20, NI increase about £20, and inflation will be 6%. So anything will be taken away, but we are still much better off than people with no increments at all!

Ledwood85 · 31/12/2021 17:02

It doesn't sound like a lot at face value - and others have pointed out the pension benefits, etc.

But also worth pointing out any increase - no matter how small - is a gift, as it gives you a new baseline where future increases are calculated from. Like compound interest, over the course of your career this increase will give a slightly higher point upon which you have the next %age applied. Then the next will be a touch higher still, and so on.

Might not seem like a lot now, but over time it's worth a lot more than what you think today. Plus those pension contributions.

Congrats on the pay rise!

CoastalWave · 31/12/2021 17:03

@Goinghome20

Well at 54yo I have found out that teachers pensions are actually not that great.

Been teaching for 23 years. 9 years FT, 14 years PT. If I retire at 60 I will get 6k a year and yes our monthly pension contributions have gone up a lot over past 4 years.

Lots of young teachers dont bother now as they need that money for rent, and I kind of wish I hadn't bothered either now.

£6k a year?! Are you sure??
Sleepyquest · 31/12/2021 17:03

It's the pensions but you'll be laughing when you're 67 Grin

twolittleboysonetiredmum · 31/12/2021 17:04

I try and view it as ‘oh there’s the phone bill covered’ or whatever. Feels a bit more like somethings been achieved then! I can’t wait for my student loan to go - I pay loads. Only 10 more years of it!
My most recent rise was the most disappointing as I went onto leadership scale which then bumped my loan and pension contributions so I get paid less for more responsibility right now
(I know in reality I’m not as it’s pension etc but day to day it feels like that)

junebirthdaygirl · 31/12/2021 17:14

@mycatistrans

I'm a teacher in Ireland and my deductions are huge but apart from PAYE and universal service charge, it all goes towards my pension. Hopefully it will be worth it in the long run.
Believe me it will be worth it in the end. I am coming to that stage now and remember in my 20s thinking this is a pain but now l am so pleased. Nice pension and lump sum to get. Also pension for dh if l go first!! My dc all in their 20s with no pension and l cannot persuade them to see the necessity of it. Just forget about the deductions and look at what you get. It will be all mounting up over the years.