Compare Two Salaries: Side-by-Side Job Offer Analysis
Evaluating a new job offer or pay rise? Enter both salary packages below to see the exact monthly and weekly difference in net take-home pay after statutory Income Tax, National Insurance, pension contributions, and student loans.
Statutory Compliance: Reviewed and verified against HMRC 2026/27 PAYE specifications (HMRC PAYE Tax Tables, NIC Rates & Thresholds). Last updated March 2026.
Current Package
New Job Offer
| Payroll Component | Offer A (Current) | Offer B (New Offer) | Difference (B - A) |
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How to Use This Calculator (Step-by-Step)
Follow these five simple steps to compare your current compensation package against a new job offer or proposed pay rise:
- Step 1 — Input Offer A (Current Role): In the left column, enter your current gross annual salary, your employee pension contribution percentage, pension arrangement, and student loan plan.
- Step 2 — Input Offer B (New Job or Pay Rise): In the right column, enter the new gross headline offer and its corresponding pension and deduction settings.
- Step 3 — Adjust Scottish Tax if Applicable: If either role is subject to Scottish residency, check the respective box to apply Scottish income tax rates (19% to 48%).
- Step 4 — Review the Take-Home Pay Delta: The tool instantly calculates the net difference in monthly, weekly, and annual take-home cash.
- Step 5 — Check Your Marginal Retention Rate: Review the hero banner to see what percentage of the gross pay raise reaches your pocket after Income Tax, NI, and Student Loans.
How to Compare Two Job Offers Beyond the Headline Gross Salary
When considering a career move or pay rise, comparing headline gross salaries alone often gives an incomplete or misleading picture. Because the UK tax system is progressive, statutory deductions such as Higher Rate Income Tax, National Insurance, student loan thresholds, and pension structures determine how much of that pay rise actually lands in your bank account.
1. The 40% Higher Rate & Student Loan "Tax Drag"
Any gross earnings above £50,270 are subject to 40% Higher Rate Income Tax, 2% employee National Insurance, and 9% Plan 2 student loan repayments. Combined, this creates an effective marginal deduction rate of 51% on that slice of income. That means for every £1,000 you earn above £50,270, you only take home £490 in cash.
2. Salary Sacrifice vs Auto-Enrolment Pension Value
If Offer B offers a Salary Sacrifice (SMART) pension scheme while Offer A uses standard auto-enrolment (relief at source), you save up to an additional 8% in National Insurance on every pound contributed. Furthermore, many progressive employers pass back some or all of their 13.8% employer NI savings directly into your pension pot, creating massive long-term wealth compounding.
3. The £100k to £125k "60% Tax Trap"
If Job Offer B pushes your adjusted net income above £100,000, your £12,570 Personal Allowance reduces by £1 for every £2 earned above £100,000. This results in an effective 60% income tax rate (or 62% including NI, and 71% with student loans). Negotiating additional pension contributions via salary sacrifice can keep your taxable income below £100k, entirely eliminating this trap.
4. Commuting and Hidden Costs
Always offset your net monthly pay increase against additional commuting costs (train fares, petrol, parking), working-from-home allowances, and childcare implications before making a final job acceptance decision.