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£24,000 Graduate Salary After Tax 2025-26

Take-home pay with and without Plan 2 student loan repayments.

You earn below the repayment threshold — £0 student loan repayment

Plan 2 repayments only begin on earnings above £27,295. At £24,000, no student loan is deducted.

Take-home (no loan)
£20,800
Take-home with Plan 2
£20,800
Monthly loan repayment
£0
Effective tax rate
13.33%

£24,000 — without vs with Plan 2 student loan

Item Without student loan With Plan 2
Gross salary £24,000 £24,000
Income Tax −£2,286 −£2,286
National Insurance −£914 −£914
Student Loan (Plan 2) −£0
Annual take-home £20,800 £20,800
Monthly take-home £1,733 £1,733

Plan 2 student loan breakdown

Your salary
£24,000
Repayment threshold
£27,295
Rate
9%
Monthly repayment
£0

What does a £24,000 graduate salary mean in practice?

On a £24,000 graduate salary, you take home £20,800/year (£1,733/month, £400/week, £80/day). Based on a 37.5-hour week, your net hourly equivalent is £10.67 without student loan. Your salary is 31% below the UK median salary of £35,000 and 20% below the typical UK graduate starting salary of ~£30,000.

Your salary of £24,000 is below the £27,295 Plan 2 repayment threshold, so no student loan is deducted through PAYE this year. Your earnings fall in the Basic Rate (20%) band — for every £1 you earn, you keep approximately 86.67p after tax and NI. Repayments will start automatically once your income exceeds £27,295.

As a new graduate on PAYE, your employer also makes Employer NI contributions (13.8% on earnings above £9,100) — this does not reduce your take-home but represents the full cost of employing you. If you have both a Plan 2 loan and a Postgraduate loan, both are deducted simultaneously through PAYE, reducing take-home further. Consider salary sacrifice into a pension if your employer matches contributions — this reduces your taxable pay and may also reduce your student loan repayments.

Personalised insights — £24,000 graduate salary

Keep per £1 (no loan)
87p
Keep per £1 (Plan 2)
87p
Tax per working day
£12
vs £25k grad entry median
−£1,000
London +20% → extra net
+£3,456
+£5k promotion → extra net
+£3,600
£20k ISA fill (20% save)
58 mo
× National Living Wage
1.01×

On £24,000 you keep 87p per £1 (87p with Plan 2), losing the equivalent of £12 in IT+NI each working day. That gross sits 1.01× the annualised National Living Wage (£23,810) and is £1,000 below the typical graduate entry median of £25,000 (net £21,520). London graduate roles typically pay a 20% weighting premium — at £28,800 gross you would take home £3,456/year more, though London rent absorbs ~£300-£500/month of that uplift vs regional hubs like Manchester, Bristol or Leeds. Your first £5k promotion would add £3,600 net (marginal rate 28%). You are using 100% of your Personal Allowance. Below the Higher Rate threshold (£50,270), a Stocks & Shares ISA (20k/year tax-free) is typically the most flexible saving vehicle — complementary to the 3-5% employer-matched pension auto-enrolment minimum. Saving 20% of take-home (£347/month) fills a full £20,000 ISA in 58 months — a strong 12-month habit to set in graduate year one.

Frequently asked questions

When do I start repaying my student loan on £24,000?

You earn below the £27,295 Plan 2 repayment threshold, so no repayments are taken. Repayments only begin once your salary exceeds £27,295.

How much student loan do I repay per month on £24,000?

Nothing — you earn below the £27,295 Plan 2 threshold. Your monthly repayment is £0.

Does student loan affect my take-home pay on £24,000?

No — your salary is below the £27,295 threshold, so no student loan is deducted. Your take-home is £20,800/year.

What happens if I earn below the repayment threshold?

If your income is at or below £27,295 (Plan 2 threshold for 2025-26), no student loan repayments are deducted — even if you have an outstanding loan balance. Repayments automatically start and stop based on your earnings each pay period.

How much student loan do I repay in total on £24,000 per year?

Nothing — your salary of £24,000 is below the Plan 2 repayment threshold of £27,295. Annual repayment is £0. Your loan balance continues to accrue interest but no money is deducted from your pay.

What does a £24,000 graduate salary work out to per hour after tax?

A £24,000 graduate salary equates to a gross hourly rate of £12.31 (based on 37.5 hours/week). After tax and NI, your net hourly rate is £10.67. No student loan deduction applies at this salary level.

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Related pages:

All graduate salaries Student part-time after tax Student Loan Calculator £24,000 after tax Income Tax Rates Pension calculator

From our blog

→ First job tax guide (UK 2025-26) → Student loan repayment tax explained