How We Calculate Teacher Pay

The order deductions are applied

This order matters, and getting it wrong is the most common reason a homemade spreadsheet disagrees with a payslip.

1. Gross pay is the pay-point salary multiplied by your FTE fraction, plus any pro-rated TLR and SEN allowances.
2. Pension is deducted first, at the tier rate based on annualised actual pensionable earnings for the eligible employment.
3. Income tax is charged on gross pay minus the pension contribution, minus your personal allowance.
4. National Insurance is charged on gross pay — the pension is not deducted first, because the TPS is a net-pay arrangement, not salary sacrifice.
5. Student loan repayments are charged on gross pay above the plan threshold.

Income tax

For England, Wales and Northern Ireland we apply the personal allowance of £12,570, then 20% on the next £37,700, 40% up to £125,140 and 45% above. Above £100,000 the personal allowance tapers by £1 for every £2 of income, which the calculator applies automatically.

For Scotland we apply the six Scottish bands, from the 19% starter rate to the 48% top rate.

National Insurance

Class 1 employee National Insurance at 8% between £12,570 and £50,270, then 2% above the upper earnings limit.

Teachers' Pension

Contribution rate is based on annualised actual pensionable earnings for each eligible employment, including pensionable allowances. The employer rate is 28.68%, including the administration levy. Pension built up each year is 1/57th of pensionable pay, revalued at CPI plus 1.6% while you remain in active service.

Known limitations

• We assume the standard 1257L tax code unless stated otherwise.
• Salary sacrifice arrangements for childcare, cycle schemes or cars are not modelled.
• Leadership pay points use the published 2026/27 advisory table; the individual school range in your pay policy determines the points available for your post.
• Pension projections use assumptions you control; they are not a statement of entitlement.
• Actuarial reduction factors shown are indicative. The scheme publishes the definitive factors.