1. Take-home pay
On £45,000 in England you take home about £35,920 a year. On £48,000 in Scotland, it’s about £37,024: just £92 a month more for a £3,000 raise, because Scotland’s Income Tax is higher on salaries over about £33,500. A Scottish salary of £45,793 would leave you where you are now.
Near £100,000, be careful: between £100,000 and £125,140 you lose your tax-free Personal Allowance, so a raise into that range is taxed at an effective 60%. See the 60% tax trap.
The job offer calculator works this out for any two offers.
2. The employer pension
Employers must pay at least 3% of qualifying earnings into your workplace pension, but many pay much more, and some work it out on your whole salary. It’s part of your pay:
| Offer | Take-home a year | Employer pension | Total |
|---|---|---|---|
| £50,000, employer pays 3% of salary | £39,520 | £1,500 | £41,020 |
| £48,000, employer pays 10% of salary | £38,080 | £4,800 | £42,880 |
- Offer A: £50,000 Employer pays 3%
- £39,520 take-home + £1,500 pension £41,020
- Offer B: £48,000 Employer pays 10%
- £38,080 take-home + £4,800 pension £42,880
Offer B is worth £1,860 a year more, on a lower salary
Employer pensions here are a share of the whole salary. Take-home pay is after Income Tax and National Insurance, with no pension of your own or student loan.
The lower salary is worth £1,860 a year more once the pension is counted. Some employers also match extra contributions you make, or offer salary sacrifice, which saves you National Insurance.
3. Bonus and benefits
- Bonus: ask what people in the role actually received, not just the target.
- Private health insurance, a company car or a car allowance are taxed as benefits or pay, so they’re worth less than their face value.
- Sick pay, enhanced parental leave and life cover can be worth a lot if you need them.
4. Holiday and working pattern
Full-time workers are entitled to 28 days’ paid holiday a year, which can include bank holidays. Many employers give 25 days plus bank holidays, or more. Count hybrid or remote working too: commuting costs and time add up quickly, especially into London.
5. Living costs
London weighting is taxed like the rest of your salary, so a London job needs to cover higher rent and travel from your take-home pay, not your gross salary.
A quick checklist
| Compare | Offer A | Offer B |
|---|---|---|
| Take-home pay a month | ||
| Employer pension, a year | ||
| Bonus (realistic) | ||
| Benefits that matter to you | ||
| Holiday days | ||
| Commute: time and cost | ||
| Rent or mortgage |
See your own numbers
The job offer calculator compares two offers after tax, with bonuses and employer pensions, and works out the salary that matches. The salary calculator adds your own pension and student loan for each offer.