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 set by your full-time equivalent salary.
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

The contribution tier is set by the full-time equivalent salary including allowances, not by actual part-time earnings. Employer contributions are 28.8%. 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 between the published L1 and L43 endpoints are interpolated and shown as indicative.
• 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.