I am shocked at how little my net salary is going up in my new role

[OneSparklyGoldBear]

currently on 80k salary with a 10k allowance. I have now been offered a new role for 95k salary with 7k allowance.

When I am working out my net income it seems to be coming to £300 extra a month only with new job!

I make sure I sacrifice enough of my salary into pension to avoid 60% tax at above 100k.

Is my maths incorrect or is it simply a small net increase?

anyone clarify?

How much will you be paying into your pension each month?

£300 per month extra is a lot in my opinion!

Net on 99k is about 5.7k, net on 90k is about 5.2k, so depending on rounding and how much you're paying into your pension yeah that sounds ballpark right.

Comfort yourself with the warm glow of knowing you're propping up the welfare state?

The reality is once you are firmly entrenched in a higher rate each raise shows less in your net pay as all the rise is at the higher rate

https://www.thesalarycalculator.co.uk/salary.php#google_vignette Salary calcular says you should get an additional £547 after tax each month based on £90k vs £102k.

Roughly, if all of it is taxed at 40% it would net down to £600 PCM so guessing you have other deductions taking it down to 300.

300 a month seems a lot to me.

An extra £300 a month net is loads.

Depends on how you're working it out and your deductions. Should be more like 5-600 by my estimate.

Contact your payroll people and ask them to clarify.

Do you have a student loan? I don't know whether payments towards that would increase also.

It’s a huge amount.

I work in the public sector and was recently offered an interview for a promotion. I turned it down. The extra salary after deductions would have worked out to £1 a day, or £28 a month…!!

It would have gone up each year to a maximum of just £160 a month after deductions after three years.

Some people's entire income is £300 a month.

But great applaud for the stealth brag.....

Marginal rate (if not over 100k) is 40% income tax and 2% employee NI = 42% of whatever the increase might be. If you have 9% student loan charge (or 15% if post grad too) that will take more off. Basically the highest 10% into which you fall support the rest and have the highest tax burden in 70 years under the high spend high tax big spend Tories and now under Labour too as the state seems to want to ensure we all work much less, earn less and pay less tax.

Yeah you’re at the point where it starts making sense to cut down days/hours as increasing stress/work time isn’t worth the pay increase.

I am massively in favour of taxation but our current system does not incentivize work after a certain point and harms our societal economic productivity.

It’s why so many NHS medical consultants work part time - it’s just not worth the stress for any of them to work more, especially when it comes at the cost of seeing their kids/family less. If this was sorted out, the consultant work force crisis would be hugely alleviated. I am sure this is true for other sectors too.

I have no student loan or other deductions. Salary sacrifice 6% into pension only

You need to make like Nicola Sturgeon and set up a company for a side gig or two

How did you work it out?

I have no student loan

Are those post tax calc?

Should be about 550 extra a month

https://listentotaxman.com/

is that with salary sacrifice into pension?

This is at least the third thread she’s started about her new job and how to avoid pay less tax on it, too…

You are looking at it as if the money you are paying into a pension is completely gone from you. You get an extra £300 every month plus more money later.

When they reach this level, most people stick about 10% into pensions.