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first job and got promotion but salary decrease ??

Hi i was earning 20k since start of January. And in March i got promotion to 23k. But now I getting pay £100 less each month. I should be getting around £1650 each month but it's now reduced to £1500 :frown:

according to employer :

"As it’s the start of a new tax year, you’ve started paying income tax (you did not earn enough last year in total to pay any). National insurance has also increased this tax year from 12% to 13.25%. You’ve also enrolled into the pension scheme.


Is this normal?? getting promotion and salary raise but less money in bank ..
The promotion and the decrease in take-home pay are entirely unconnected, except via a coincidence of timing.

If you hadn't been promoted (and received an increase in gross salary) your take-home pay would have decreased even more.
Reply 2
So, there are some genuine new deductions from your salary. National insurance has gone up, blame the government, and if you have only just started paying in to the pension scheme this is new too. Note that the pension payments are not lost income though, you still have that money. The tax is a bit of red herring as while you may pay a higher proportion of tax if your income increases, it will not be larger than the increase itself. Mind you, even with the NI and depending on how much you pay in to your pension, I would expect you would see some monthly benefit from a 15% pay rise
If your job only started in January you would have earned 3/12 of £20k by end of tax year.
So I assume no tax was deducted as you would not have earned over £12,500 that year. Ni is a monthly tax so that would apply.
Now you will get over £12,500 in a tax year so tax is paid and ni,

So now is your normal take home, before you were just lucky for a bit.
Original post by Anonymous
Hi i was earning 20k since start of January. And in March i got promotion to 23k. But now I getting pay £100 less each month. I should be getting around £1650 each month but it's now reduced to £1500 :frown:

according to employer :

"As it’s the start of a new tax year, you’ve started paying income tax (you did not earn enough last year in total to pay any). National insurance has also increased this tax year from 12% to 13.25%. You’ve also enrolled into the pension scheme.

Is this normal?? getting promotion and salary raise but less money in bank ..


Your pay slip will indicate your basic pay and itemise the deductions (income tax, National Insurance, pension contributions). If you compare previous months' pay slips you should be able to see what has changed.
Yes, what your employer is saying makes sense. Now being eligible to pay tax, enrolling in a pension scheme and the increase in NI will all affect your take home pay especially if you weren't contributing to any of those before your promotion. The increase in NI would mean you'd be getting paid less even without a pay rise.

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