Help calculating new salary!

[clovatt1991]

Hi guys, I’ve tried using the salary calculator but feel I am using it wrong!

So I currently work 37.5 hours a week over 5 days. My annual salary is £23,600 per annum before tax and I earn around £1,450 a month after tax, NI, pension, etc. I am looking to switch to 22.5 hours a week over 3 days later on in the year.

How much would I be earning a month to switch?

Thank you so much!

Gross (before tax) I make it around £14,160. Can't tell you net as I don't have enough info.

So gross is about 1180 per month.

I make it 14160 as well, have you used listen to taxman website? You can put that it in as the gross then tick/untick student loan info etc for net

listentotaxman.com/?year=2022&taxregion=uk&age=0&time=1&ingr=14160

Makes it 1136 net without pension, student loan, any other relevant info

www.thesalarycalculator.co.uk/salary.php

This is a usefull calculator

Around 1,180 pcm.

Putting in 23600, a plan 1 student loan(which is minimal, but more than plan 2) and 12% pension gets you to 1500 take home. Some you have so.e big deductions somewhere that aren't factored in.

Your total salary will be around 14160/year, or 1180/month. But what the deductions will look like I can't calculated, because I can't match your current take home on sensible numbers.

@clovatt1991 You're welcome!

Around £1138pcm but a bit less if you contribute extra to a pension or have student loans. 3 days will always seem 'better value' than 5 because of the tax threshold which is why many parents choose this if they can afford it. Often after you factor in childcare costs those extra 2 days reallyvarent worth it.

So you're dropping your working hours to 60% so you need to multiply your gross salary by 0.6 then enter the new amount into a salary calculator with correct pension percentage.

You'll take home more than 60% of the old amount because you only pay tax and NI above the personal allowance, may possibly pay a lower percentage into your pension and you'll drop below the threshold for student loan repayments if you have one.

As others have said, if you also save on childcare costs and/or receive higher UC if relevant, you won't be that much worse off by dropping 2 days a week.

Old salary / 52 / 37.5 will get your hourly rate then you can multiply back the same way for your new salary

Assuming you’re on a regular tax code (1257l) you’ll only pay tax on anything above £1048 per month at 20%

NIC will be earnings above £1048 at 12% deduction

If you’re in a salary sacrifice pension, deduct that from your gross before you work out any tax /nic (same for any other Sal sac deductions like holiday purchase)

The above will work for any change in hours at that hourly rate so worthwhile playing around with the hours to see the difference an extra hour or two can make