Why you never receive the headline percentage
When a 3.5% award is announced, that 3.5% applies to your gross salary. Every deduction is a percentage of that same gross figure, so they all rise too.
- Income tax takes 20% of the increase, or 40% if it crosses the higher-rate threshold.
- National Insurance takes 8% of it, or 2% above the upper earnings limit.
- Pension takes your tier rate, between 7.4% and 12.7%.
For a basic-rate taxpayer in the 8.6% pension tier, that is roughly 36.6% of the increase gone before it reaches you — leaving about 63%.
What the 2026/27 award is actually worth
The 2026/27 STPCD applied a 3.5% uplift from 1 September 2026. Here is what that meant in cash at four pay points.
| Point | Old salary | New salary | Gross rise | Net rise | Kept | Net per month |
|---|---|---|---|---|---|---|
| M1 | £34,068 | £35,260 | £1,192 | £449 | 38% | £37 |
| M4 | £40,940 | £42,373 | £1,433 | £933 | 65% | £78 |
| M6 | £46,939 | £48,582 | £1,643 | £1,057 | 64% | £88 |
| U3 | £52,835 | £54,684 | £1,849 | £1,300 | 70% | £108 |
The pension tier cliff edge
This is the most important and least understood effect in teacher pay. The contribution tiers are not marginal bands like income tax. When you cross a boundary, the new higher percentage applies to your whole salary.
| Tier boundary | Rate below | Rate above | Extra cost of crossing |
|---|---|---|---|
| £34,289 | 7.4% | 8.6% | 1.2% of your entire salary |
| £46,158 | 8.6% | 9.6% | 1.0% of your entire salary |
| £54,729 | 9.6% | 10.2% | 0.6% of your entire salary |
| £72,534 | 10.2% | 11.7% | 1.5% of your entire salary |
| £98,908 | 11.7% | 12.7% | 1.0% of your entire salary |
The tier is assessed on your full-time equivalent salary, so part-time teachers cross boundaries at the same FTE points as full-timers even though their actual pay is lower. That mechanism is explained in the part-time pay calculator and the contributions guide.
Progression matters more than the award
For most teachers under about eight years into their career, moving up the pay scale delivers far more than the annual award — and the two stack.
| Component | Effect on gross salary |
|---|---|
| Starting point, M3 2025/26 basis | £37,101 |
| 3.5% award applied to the scale | M3 becomes £38,400 |
| Progression M3 to M4 | M4 is £40,940 |
| Total gross increase | £3,839 |
| Of which from the award | £1,299 |
| Of which from progression | £2,540 |
Progression is roughly twice the award in this example. The scale point figures come from the main pay range guide, and the 2025/26 comparison basis is derived by removing the 3.5% award.
When will teachers get a pay rise? The annual timetable
It is the most common pay-rise question teachers search, and the answer follows a fixed annual cycle. Knowing where in the cycle you are tells you whether silence from your payroll means delay or normal process.
| When | What happens |
|---|---|
| Spring term | STRB takes evidence; unions and DfE submit pay evidence and consultation responses. |
| May-June | STRB report goes to ministers with a recommended percentage. |
| July | Government accepts, rejects or amends the recommendation and announces the award. |
| 1 September | New scales take effect for all teachers and leaders on STPCD terms. |
| September-October payslips | New salary appears, sometimes with arrears if confirmation came late. |
| Following April | Tax, NI and pension thresholds reset against the new salary. |
Scottish teachers follow a different cycle entirely, negotiated through the SNCT rather than the STRB — timings and percentages can diverge from England and Wales in any given year. Model any scenario above once an award is confirmed, or stress-test a range using the projections below.
Multi-year projections
Future awards are not known in advance. Modelling a range is more useful than assuming one number. These projections start from M3 at £38,400 and hold the pay point constant, so they isolate the award effect.
| Annual award | Year 1 | Year 2 | Year 3 | Year 4 |
|---|---|---|---|---|
| 2% | £38,400 | £39,168 | £39,951 | £40,750 |
| 3% | £38,400 | £39,552 | £40,739 | £41,961 |
| 4% | £38,400 | £39,936 | £41,533 | £43,195 |
The gap between a 2% and a 4% settlement compounds to nearly £2,450 of gross salary within four years. Over a full career the difference is substantial, which is why the annual STRB process matters — see the STRB explained.
Timing: September, not April
Teacher pay awards run with the school year from 1 September. Tax and National Insurance thresholds change on 6 April. Pension tier boundaries are also reviewed on the April cycle.
The practical result is that your September payslip shows the new salary against old thresholds, and your April payslip shows the same salary against new thresholds. Both months can produce an unexpected change in net pay for reasons unrelated to each other.
How to sanity-check any percentage rise yourself
You can approximate the take-home effect of any gross rise with a simple rule of thumb. For a basic-rate taxpayer in the 8.6% pension tier, multiply the gross rise by roughly 0.63 — so a £2,000 gross increase is worth about £1,260 a year or £105 a month in your account.
- Below £34,289 (7.4% tier): keep about 64% of the rise.
- £34,290 to £46,158 (8.6% tier): keep about 63%.
- £46,159 to £54,729 (9.6% tier): keep about 62%.
- Above £54,730 (10.2%+ tiers) and past the higher-rate threshold: keep 50% to 60%, falling further as more of the rise lands in the 40% band.
The rule of thumb breaks down whenever the rise crosses a tier boundary, which is exactly when you need the calculator most — the boundary effect applies the new rate to your whole salary, not just the extra pounds.
Common mistakes when working out a pay rise
- Multiplying take-home pay by the award percentage. Deductions do not scale evenly because allowances and thresholds are fixed amounts.
- Missing a pension tier crossing. This is what turns a 65% retention into 38%.
- Confusing the award with progression. They are separate and they stack.
- Assuming April. Teacher awards start in September.
- Comparing gross to gross across regions. London weighting changes the base entirely — see the pay scale tables.
- Ignoring the pension gain. A higher salary also increases the pension you build that year.
For the detail of how each award was set and what it covered, see teacher pay rise 2026/27 and the pay rise pillar guide. To see the full deduction breakdown at your new salary, use the teacher pay calculator.
Frequently asked questions
How much is a 3% pay rise for a teacher after tax?
As a rough guide, a basic-rate taxpayer keeps about 63% of it, so a 3% award on a £38,400 salary adds around £1,152 gross and roughly £726 net a year, or about £61 a month. If the rise crosses a pension tier boundary, keep noticeably less.
How much of a teacher pay rise do you actually keep?
Typically 60% to 70% after income tax, National Insurance and pension. If the rise crosses a pension tier boundary it can drop below 40%. An M1 teacher receiving the 3.5% award keeps only £449 of a £1,192 gross increase, because the rise pushes them into the 8.6% pension tier.
What was the teacher pay rise for 2026/27?
The 2026/27 STPCD applied a 3.5% uplift to all pay scales from 1 September 2026. In cash that is £1,192 on M1, £1,433 on M4 and £1,849 on U3, before deductions.
Why did my pay rise barely change my take-home pay?
Most likely you crossed a pension contribution tier boundary. Unlike income tax bands, the tiers are not marginal — when you cross one, the higher percentage applies to your entire salary, not just the amount above the threshold. Crossing the £34,289 boundary costs an extra 1.2% of your whole salary.
When do teacher pay rises take effect?
From 1 September, in line with the school year. This differs from tax and National Insurance thresholds, which change on 6 April. If an award is confirmed late it is usually backdated and paid as arrears.
Is pay scale progression the same as a pay rise?
No, and they stack. Progression moves you to the next point on your scale, normally annually subject to performance. The pay award lifts every point on every scale. For early-career teachers progression is usually worth about twice the annual award.
How do I calculate my new salary after a pay award?
Multiply your current pay point by the award percentage, or take the new figure directly from the updated STPCD tables. To see the take-home effect, enter the new salary in the calculator above — that applies the correct pension tier, which is the step most manual calculations get wrong.
Does a pay rise increase my pension?
Yes, in two ways. In a career average scheme you build 1/57th of each year's pensionable pay, so a higher salary means a bigger slice banked that year. Your employer also contributes 28.8% of the higher figure. The pension deduction from your take-home is not simply a loss.
Sources
Related tools and guides
work out your take-home pay
Free UK teacher pay calculator for 2026/27. Work out take-home pay from any STPCD pay point including pension,
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Part-Time Teacher Pay Calculator
Work out pro rata pay for part-time teachers. Enter your FTE fraction — 0.4, 0.5, 0.6, 0.8 — to see gross and
how we calculate these figures
The exact formulas, rates and data sources behind every calculator on this site, including the order deduction
About UK Teacher Pay
Independent, free calculators and reference data for UK teachers, built on official STPCD and HMRC figures wit