10% gross cut, what is that approx net?

Hello there

Just been informed we are getting a 10% GROSS pay cut. Trying to work out what the net loss would be. They have said it is about 6%, but would like a second opinion.

Thank you.

Reply to
Simon
Loading thread data ...

It depends on what you earn, what deductions are made etc.

Reply to
Simon Finnigan

Probably 6.9% if you earn under about 44k, or 5.9% if you earn more than 44k.

But it'll be different if you're in a company pension scheme which takes a % of your income, or if it's contracted out.

Reply to
Andy Pandy

I make it about 9.6% for a salary of £30K and considering only 20% tax on earnings over £5K.

What other things need to be factored in?

Reply to
BartC

NI.

I answered the wrong question really, my answer gives what % of his gross the OP will lose. Eg if he's on 20k he'll probably lose 6.9% of 20k ie 1380. Could get more in tax credits, depending on income/circumstances.

Reply to
Andy Pandy

As others have said, it depends.

It also depends on what you are calculating the % against.

But to a reasonable approximation, your NET salary will also go down by about 10%

I cannot remember exactly what the bands are but taking NI as 12.8% to

40k, 1% above. 0% tax to 5k, 20% to 40k I get a NET salary reduction of 8.6% for a salary of 45K. (Previously take home would be 30.8K, now it's 28.2K)

If you're below 42K or above 66K then it's >9.0% reduction in take home pay.

Tim.

Reply to
Tim Woodall

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.