How does student loan repayment work? Salary calculator not matching up

startingout2016

I’ve recently had a payrise and before I got paid this month I checked on the salary calculator website to get an idea of what I would be paid after deductions had been taken 

I’m on student loan plan 1 as I was at university in 2005. 

My salary is now £36.5k and salary calculator says that should be £2143 after deductions (including a 5% pension contribution) 

I was paid this morning and I’ve actually been paid £100 less than this. 

Can student loan repayments vary to that on the salary calculator website? 

fred246

I don't know the answer but I do know that you are doing absolutely the correct thing in checking up the calculations for yourself. The SLC are extremely incompetent and you should check everything yourself.

chrisbur

startingout2016 said:

I’ve recently had a payrise and before I got paid this month I checked on the salary calculator website to get an idea of what I would be paid after deductions had been taken 

I’m on student loan plan 1 as I was at university in 2005. 

My salary is now £36.5k and salary calculator says that should be £2143 after deductions (including a 5% pension contribution) 

I was paid this morning and I’ve actually been paid £100 less than this. 

Can student loan repayments vary to that on the salary calculator website? 

Have you actually got your payslip yet, if so is it definitely the student loan that is causing the change to your net pay?

startingout2016

Not yet. It can be slow to get the payslip as we are small company and pay is outsourced to someone working from home. Should get it later today and I can know for sure 

chrisbur

startingout2016 said:

Not yet. It can be slow to get the payslip as we are small company and pay is outsourced to someone working from home. Should get it later today and I can know for sure 

There are other things that may have affected your net.  Might be that your pay period this payslip was partly at your old rate.

TBagpuss

I would wait until you get your payslip and check that, as it may be that there is some other reason it is a bit different to what you expected. I'd then check with your own payroll person first, as they may be able to explain the difference, and then query it with the SLC if it is still unclear. 

doodlez1612

Plan 1 is 9% on everything you earn over £1615 per month so say you earn eg £2000 after tax it’s £2000 - £1615 = £385, 9% of £385 is £34.65 per month. 

Or taking it on an annual basis if you earn £36.5k then (assuming the £12500 tax free allowance) your taxable pay is £24k so your annual student loan repayments is £2160 (ie £180 per month). But it is calculated month by month so if you have any extra payments on your payslip that add to your taxable pay then you may pay a little more or less from month to month.