Understanding how to calculate your NHS salary helps you predict your real take-home pay and manage your finances effectively.
The process involves combining your base pay (band and step), regional allowances, and deductions like tax, National Insurance (NI), and NHS pension contributions.
Let’s go step-by-step so you can calculate your NHS pay accurately for 2025.
Step 1: Identify Your Pay Band and Pay Step
The NHS uses the Agenda for Change (AfC) pay structure, which includes Bands 1–9.
Each band has multiple steps or “pay points” that increase as you gain experience.
🔹 Example (Band 5 in 2025):
- Step 1: £28,407
- Step 2: £30,639
- Step 3: £34,581
You can check your band and step on your contract or latest payslip.
Step 2: Add Regional Allowance (If Applicable)
If you work in London or nearby areas, you’ll receive High-Cost Area Supplements (HCAS):
| Region | Allowance | Typical Range |
|---|---|---|
| Inner London | 20% | £5,200 – £7,400 |
| Outer London | 15% | £4,300 – £5,600 |
| Fringe Area | 5% | £1,100 – £2,000 |
Add this allowance to your basic salary before any deductions.
Step 3: Determine Your Pension Contribution
All NHS employees are automatically enrolled in the NHS Pension Scheme unless they opt out.
Contributions are tiered based on your pensionable pay.
| Pensionable Pay | Contribution % (2025) |
|---|---|
| Up to £15,431 | 5.2% |
| £15,432 – £29,179 | 6.5% |
| £29,180 – £43,579 | 7.7% |
| £43,580 – £51,439 | 9.8% |
| £51,440 – £64,559 | 10.5% |
| £64,560 – £96,999 | 11.6% |
| £97,000+ | 12.5% |
Multiply your gross salary by the correct percentage to find your monthly deduction.
Step 4: Deduct Income Tax
Income tax is based on UK tax bands (2025/26):
| Band | Taxable Income | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | £125,141+ | 45% |
Subtract £12,570 from your gross pay to find your taxable income, then apply the rate.
Step 5: Deduct National Insurance (NI)
National Insurance contributions depend on your monthly income.
| Monthly Earnings | NI Rate |
|---|---|
| Up to £1,048 | 0% |
| £1,048 – £4,189 | 8% |
| Above £4,189 | 2% |
Multiply your NI-eligible pay by the correct rate.
Step 6: Calculate Your Take-Home Pay
Now you can calculate your net (take-home) pay:
Formula:
Gross Salary + HCAS – Pension – Tax – NI = Net Pay
🧮 Example (Band 5 Step 1 – Outside London)
| Item | Amount (£) |
|---|---|
| Gross Annual Salary | 28,407 |
| Pension (7.7%) | –2,187 |
| Tax & NI | –3,870 |
| Take-Home Pay | £22,350/year (£1,862/month) |
Step 7: Consider Other Adjustments
- Overtime & Unsocial Hours: Paid extra, often at 1.3× – 2× rate.
- Salary Sacrifice: Reduces taxable income (e.g., cycle-to-work schemes).
- Student Loan or Childcare Deductions: May apply depending on your situation.
Why Use an NHS Salary Calculator?
Manual calculation is useful for understanding the logic, but online calculators:
- Apply current tax thresholds automatically.
- Include pension rates and London weighting.
- Provide instant monthly and yearly breakdowns.
Use one if you want quick results with 2025 data built-in.
More Topics
How NHS Take-Home Pay Is Calculated
FAQs
Q1: Can I calculate my NHS salary for part-time work?
Yes — multiply your full-time annual salary by your contracted hours ÷ 37.5.
Q2: Do overtime payments affect pension?
Some allowances are pensionable, others aren’t. Check your Trust’s HR policy.
Q3: Is my NHS salary paid monthly or weekly?
Most NHS staff are paid monthly, usually on the last working day.