The short version: Take-home pay is what actually lands in your bank account after all deductions. Your gross salary minus Income Tax, National Insurance, pension contributions, student loan repayments, and anything else that gets taken off.
What gets deducted?
Income Tax (based on your tax code), National Insurance, pension contributions if you’re in a workplace scheme, student loan repayments if you have one, and sometimes other things like childcare vouchers or cycle scheme payments.
Why is it different from your salary?
Your salary is the headline figure before deductions. Take-home pay is reality. The gap can be surprising, especially as you earn more and hit higher tax bands.
How do you check it’s right?
Look at your payslip. It should show gross pay, each deduction, and net pay. If the tax code looks wrong or something doesn’t add up, query it with your employer or HMRC.
Want to understand your payslip better? We can help you make sense of the numbers.
