£40,000 salary with a 7.5% pay rise
A 7.5% pay rise takes a £40,000 salary to £43,000, £3,000 more before tax. After Income Tax and National Insurance your take-home pay rises from £32,320 to £34,480 a year, an extra £2,160 (£180 a month). You keep 72% of the rise.
| Salary before the rise | £40,000 |
| Salary after the rise | £43,000 |
| Take-home before | £32,320 |
| Take-home after | £34,480 |
| Extra take-home per year | £2,160 |
| Extra take-home per month | £180 |
| Extra Income Tax and NI | £840 |
How this is worked out
The new salary is the old salary increased by 7.5% and rounded to the nearest pound. Take-home pay is worked out for both salaries over a full tax year; the difference is what the rise is worth after tax.
Figures use the 2026-27 rates for England: tax code 1257L with the £12,570 Personal Allowance, no other income and no student loan. Income Tax at 20% up to £50,270, 40% up to £125,140 and 45% above. The Personal Allowance falls by £1 for every £2 of income over £100,000. Employee Class 1 National Insurance is 8% on pay between £12,570 and £50,270 a year and 2% above.
Sources: Income Tax rates and allowances (GOV.UK), National Insurance: how much you pay (GOV.UK)