Every NHS employee receives a gross salary, but your net pay (take-home amount) is what lands in your bank.
Let’s break down the difference and see how each element affects what you actually earn.
What Is Gross Pay?
Gross pay = Your base salary (Band + Step) + any allowances or overtime.
Includes:
- Basic NHS pay
- High-cost area supplements (London weighting)
- On-call or night shift pay
- Overtime
It does not include tax or pension deductions.
What Is Net Pay?
Net pay = Gross Pay − Deductions
This is your actual take-home amount after:
- Income Tax
- National Insurance (NI)
- NHS Pension
- Salary Sacrifice schemes
Example Breakdown (Band 6 Step 2 – 2026)
| Component | Amount (£) |
|---|---|
| Gross Pay | 37,350 |
| Pension (9.8%) | −3,662 |
| Income Tax | −3,250 |
| National Insurance | −2,000 |
| Net Pay (Annual) | £28,438 |
| Monthly Take-Home | £2,370 |
Key Differences Between Gross & Net Pay
| Category | Gross Pay | Net Pay |
|---|---|---|
| Definition | Total before deductions | Amount after all deductions |
| Shown On Payslip | Top line | Bottom line |
| Tax Applied? | No | Yes |
| Pension Deducted? | No | Yes |
Why Gross and Net Pay Both Matter
Lenders commonly consider gross pay when assessing applications, while personal budgeting depends on the amount that reaches your bank account. If you are considering overtime or promotion, the NHS Salary After Tax guide can help you understand how additional deductions may affect the increase in take-home income.
You can also model the effect on your own pay using your NHS band, working hours and location before making a financial decision.
FAQs
Q1: Are overtime payments part of gross or net pay?
Q1: Are overtime payments part of gross or net pay?
Overtime is added to gross pay before applicable deductions are taken. If you want to test different hourly rates, overtime hours or multipliers, the NHS Wage Calculator can provide a quick estimate.
Q2: Why does my net pay vary monthly?
Net pay can change because of overtime, tax adjustments, pension contributions or other payroll deductions. The NHS Take Home Pay Calculator can help you review how your NHS band, working pattern and pension participation affect an estimated monthly figure.
Q3: Can salary sacrifice reduce tax?
Yes — schemes like cycle-to-work reduce taxable income.
Q4: Does NHS pension reduce net pay?
Yes. Pension contributions are deducted from gross pay and therefore reduce the amount received in your bank account.
Q5: Where can I check the deductions shown on my payslip?
You can compare your gross pay, net pay, tax and National Insurance with the official GOV.UK payslip guidance.