Your First Payslip 2026: Tax, NI and Pension Explained
Your first payslip rarely matches the salary you agreed. The gap is not a mistake by your employer. Every line on a payslip follows a rule. Once you know the rules, you can check your own pay in minutes.
This guide explains each deduction on a first payslip. The figures come from UK rules for the tax year that runs from 6 April 2026 to 5 April 2027. It also shows what the same lines look like in Kenya, Uganda and the Philippines.
TL;DR
- Four things come out of your pay: income tax, National Insurance, pension and student loan.
- A £30,000 salary leaves you about £23,876 a year.
- The tax-free Personal Allowance is £12,570.
- Check your tax code early. Fixing it puts money back in your pay.
What your first payslip must show
In the UK your employer must give you a payslip on or before payday. Printed or online both count. The law says it must show your pay before and after deductions. It must also show any deduction that changes each time you are paid, such as tax and National Insurance. If your hours change, the payslip must show the hours you worked.
Check five numbers every month: gross pay, net pay, tax, National Insurance and pension. If one is missing, ask your payroll team the same day.
The four deductions on a first payslip
Each deduction has its own rule. GOV.UK publishes all four.
| Deduction. | What it costs you. | 2026 rule. |
|---|---|---|
| Income tax. | 20% of pay above your allowance. | The Personal Allowance is £12,570 a year. |
| National Insurance. | 8% of pay above £12,570. | Employees pay 8% up to £50,270 a year. |
| Pension. | Usually 5% of qualifying earnings. | Auto-enrolment sets you at 5% and your employer at 3%. |
| Student loan. | 9% of pay above your plan threshold. | Plan 2 starts at £29,385 a year. |
A bigger salary changes two of these. Pay above £50,270 is taxed at 40%. National Insurance on that pay drops to 2%.
What a graduate salary looks like after tax
The table below uses three common starting salaries. Each row assumes the pension minimum. Each row also assumes a Plan 2 student loan, which most UK graduates have.
| Salary. | Income tax. | National Insurance. | Pension. | Student loan. | Take-home. | Monthly. |
|---|---|---|---|---|---|---|
| £24,000. | £2,286. | £914. | £888. | £0. | £19,912. | £1,659. |
| £30,000. | £3,486. | £1,394. | £1,188. | £55. | £23,876. | £1,990. |
| £35,000. | £4,486. | £1,794. | £1,438. | £505. | £26,776. | £2,231. |
Two figures stand out on the middle row. Pension and student loan together take £1,243 from a £30,000 salary. Both are still your money. One builds a pot for later. The other clears a debt.
You can also lift your take-home pay with a better offer. Our guide to graduate salary negotiation shows how to ask.
Why your first payslip is smaller than you expect
Three things surprise new starters.
- Pro-rata pay. Start mid-month and you are paid only for the days you worked.
- Emergency tax. With no P45 your employer may use an emergency code. That code taxes all your pay at 20% until it is fixed.
- Pension from month one. Auto-enrolment often starts on your first payday.
Your tax code is the fastest thing to check. The standard code 1257L matches the £12,570 allowance. A code that ends in W1, M1 or X is temporary. Tell HMRC and your payroll team, and the tax corrects on a later payslip.
Payslips in Kenya, Uganda and the Philippines
Every Padgrad market deducts money before payday. The lines simply carry different names.
- Kenya. PAYE goes to the Kenya Revenue Authority. NSSF covers a pension, and the Social Health Authority covers health.
- Uganda. PAYE goes to the Uganda Revenue Authority. NSSF covers a pension.
- The Philippines. Withholding tax goes to the Bureau of Internal Revenue. SSS, PhilHealth and Pag-IBIG cover pension, health and savings.
Ask your employer for a written breakdown of each deduction. The rule is the same in every market. You should be able to check every line yourself.
How to check your payslip in five minutes
Work through four steps on the day you are paid.
- Compare gross pay with your contract and your hours.
- Check that tax starts above £12,570.
- Check National Insurance at 8% of pay above £12,570.
- Check the pension rate, then add the employer contribution to your pot.
- Check your student loan plan and threshold.
Then use our take-home pay calculator to compare the numbers. If something looks wrong, ask in writing and keep the reply.
The Bottom Line
A first payslip is a lesson in how pay works. Tax and National Insurance are the law. Pension and student loan are your own money moving somewhere useful. Check them once, and the numbers stop being a mystery.
Then plan the money you keep. Our graduate budgeting guide shows how to split a first salary.
Sign up to Padgrad for a daily digest of graduate roles in the UK, Kenya, Uganda and the Philippines.
By Ori