Before You Accept That Job Offer: The Money Stuff Nobody Mentions

The short answer: Compare the whole package, not just the salary. In 2026/27, check how much the employer pays into your pension and what it's worked out on (often only earnings between £6,240 and £50,270). Then check which tax, student loan and Child Benefit thresholds the new salary crosses. A bigger salary can still leave you with less overall.

What should I check before accepting a job offer?

Check everything the job pays you, not just the headline number. The rest of the package can be worth thousands a year, so ask about each of these:

• Base salary. The obvious bit.

• Bonus. Is it cash or deferred? Is it realistic, or more of a dangled carrot?

• Shares or options. Is there a vesting schedule or a cliff? What would they be worth?

• Employer pension contributions. Often the biggest hidden difference (see the next section).

• Holiday. The legal minimum for most people working 5 days a week is 28 days' paid leave a year, including bank holidays if your employer counts them. Each extra day has a value.

• Benefits. Health cover, life cover, income protection, enhanced parental leave, training budgets, travel help.

• Allowances and costs. A longer commute or a new travel pass comes out of your pay too.

Ask for specifics in writing. "Competitive benefits" isn't a number, and you can't compare two offers until you have numbers.

Pension contributions are the easiest part to overlook, because you never see them land in your bank account.

Capital at risk. The value of your pension can go down as well as up, and you may get back less than you pay in.

What you take home also depends on tax rules and allowances, covered further down.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future.

How do I compare job offers with different pension contributions?

Look at the employer's percentage, what pay it's worked out on and when you can join. Two offers that both say "pension" can be miles apart.

Under auto-enrolment, the legal minimum is 3% from your employer and 5% from you, 8% in total. Some employers pay much more. Some will only match what you put in, so "up to 10%" might mean 10% only if you pay 10% too.

The pay it's worked out on matters as well. In most auto-enrolment schemes, contributions are based on earnings between £6,240 and £50,270 a year (called "qualifying earnings"). The government kept both limits and the £10,000 earnings trigger the same for 2026/27. So 3% of qualifying earnings is less than 3% of your full salary.

Assumes the whole salary is basic pay and the employer pays the stated percentage with no matching conditions. Made-up figures for illustration.

Other things to ask:

1. Is there a waiting period? Your employer can delay enrolling you by up to 3 months. They must tell you in writing, and they must let you join sooner if you ask.

2. Do they use salary sacrifice? This is where you give up part of your salary and your employer pays it into your pension. In some cases you and your employer pay less tax and National Insurance. We explain how it compares with other routes in our guide to salary sacrifice and workplace pensions.

3. Is the scheme defined benefit or defined contribution? The minimum amounts paid in are higher for most defined benefit schemes, so ask which type you'd join.

One change to know about: from April 2029, only the first £2,000 a year you put in through salary sacrifice will be free of National Insurance. Employer contributions stay free of National Insurance.

Example: is £48,000 with 3% better than £42,000 with 10%?

In this made-up example, you live in England, you're on a Plan 2 student loan, and you're comparing:

• Current job: £42,000 salary, employer pays 10% of full salary.

• New offer: £48,000 salary, employer pays 3% of qualifying earnings.

It looks like a £6,000 pay rise. Once you add the employer pension, it's smaller:

Ignores your own pension contributions, bonuses and benefits. Uses 2026/27 rates for England. Made-up figures.

Now the take-home side. The extra £6,000 all falls in the basic rate band, so you pay 20% Income Tax and 8% National Insurance on it. Both salaries are over the Plan 2 threshold of £29,385, so 9% goes to your loan too.

• Income Tax: £1,200

• National Insurance: £480

• Student loan: £540

• Extra take-home: £3,780 a year

So you'd have £3,780 more in your bank account each year, and £2,947.20 less going into your pension from your employer. The "£6,000 rise" is worth about £833 a year more overall on paper, and less if you'd value pension money for later. The new job could still be the right move. The gap is just much smaller than the offer letter suggests.

How much of a pay rise will I actually keep?

It depends on which band the extra money lands in. On pay between £12,570 and £50,270 you keep about 72p of each extra £1. Above £50,270, it drops to about 58p, because the higher rate of 40% starts at £50,271.

England, Wales and Northern Ireland rates with the standard £12,570 Personal Allowance. Before any student loan or pension contributions. NI rates from GOV.UK: 8% on £242 to £967 a week and 2% above.

Why the dip between £100,000 and £125,140? Your Personal Allowance goes down by £1 for every £2 of income over £100,000, and it's gone completely at £125,140. Losing allowance means more of your income gets taxed, which works out at an extra 20p on each £1 in that band.

If you live in Scotland, the bands are different. In 2026/27 the Scottish higher rate of 42% starts at £43,663, so a rise can hit a higher rate sooner.

Will a pay rise affect my Child Benefit or student loan?

It can affect both. Child Benefit starts to be clawed back once one of you earns over £60,000, and student loan repayments rise by 9p for every extra £1 over your plan's threshold.

Child Benefit. If you or your partner has income over £60,000, you pay back 1% of your Child Benefit for every £200 over, and all of it over £80,000. This is the High Income Child Benefit Charge. Child Benefit is £27.05 a week for the eldest child and £17.90 for each other child.

Made-up example: you have 2 children, so you get about £2,337 a year. A new job takes your income to £70,000. That's £10,000 over the threshold, so you pay back 50%, about £1,169. The charge uses "adjusted net income", which is worked out after certain reliefs such as pension contributions and Gift Aid. Our guide to what happens to Child Benefit when you earn over £60,000 goes into the details.

Student loans. You repay a share of income over your plan's threshold. These are the current thresholds, which change on 6 April every year:

Source: GOV.UK.

So a £5,000 rise above your threshold means about £450 more a year to your loan. Bonuses and overtime count as income, and a big bonus month can trigger a repayment even if your yearly pay is under the threshold. If you're early in your career, our guide to student loans and money after graduation has more.

Is it worth waiting before I hand in my notice?

Sometimes, yes. Waiting a few weeks can mean you get a bonus, shares or holiday pay that you'd otherwise lose. Check these before you resign:

1. Bonus. When is it paid, and do you have to be employed (and not working your notice) on that date? Your contract or bonus scheme rules will say.

2. Shares or options. If something vests soon, leaving a week early could mean losing it.

3. Holiday. When you leave, your employer must pay you for untaken statutory leave. Extra days above the legal minimum can have their own rules, so check your contract.

4. The pay gap. When is your last payday at the old job, and your first at the new one? It could be several weeks between the two, so plan your bills around it.

5. Big plans. If you're about to apply for a mortgage, ask a lender or broker how a new job or probation period affects things before you switch.

Why am I on an emergency tax code after changing jobs?

Usually because your new employer doesn't have your previous pay details yet. If your new employer does not know your previous income, you may be put on an emergency tax code, which can mean paying too much tax for a while.

To spot it and sort it:

• Check your first payslip. Codes ending in W1, M1 or X are emergency codes. A 0T code can mean your employer doesn't have the details they need. Most people with one job are on 1257L.

• Hand over your P45. Give your P45 to your new employer. If you don't have one, fill in the starter checklist, and ask your old employer for the P45.

• Give it time. If you've just started, wait 35 days for HMRC to get your new income details before contacting them. You can check and update your details online.

If you've paid the wrong amount, you can get a tax refund once HMRC has the right details, so it's annoying rather than lost money.

What happens to my old pension when I change jobs?

It stays yours. Your workplace pension still belongs to you, and if you stop paying in, the money stays invested until you can take it. You might be able to keep paying in, or combine old and new pots, so ask your providers about your options.

The catch is keeping track. After a few moves you can have pots with different providers, different charges and funds you never chose. The Pensions Policy Institute estimates there are 3.3 million lost pots worth £31.1 billion.

When you change jobs, add "sort out old pensions" to your list. Not glamorous, but your future self will thank you. If you've lost one, the government's Pension Tracing Service can find contact details, although it won't tell you whether you have a pension or what it's worth. If you're wondering whether to combine them, start with our beginner's guide to pension consolidation.

Quick checklist before you say yes

Before you accept:

• Total package, not just salary?

• Employer pension: what percentage, on what pay, and any waiting period?

• Benefits: what's included, and what's it worth to you?

• Any tax, student loan or Child Benefit thresholds you'll cross?

• Any bonus, shares or holiday you'd lose by leaving now?

Practical bits:

• How long is the gap between paydays?

• Any mortgage or big plans that might be affected?

• Old pension pots to track down?

A new job is often the best money move you'll make, so it's worth ten minutes with a calculator first. Everyone's situation is different, so we can't say which offer is right for you, but these checks help you compare like with like. If you'd like free, impartial guidance on pensions, MoneyHelper is a good place to start.

Still got questions?

Do I have to pay 5% into my workplace pension? Under auto-enrolment, the usual minimum is 5% from you and 3% from your employer. If your employer pays more than the minimum, you can pay in less as long as the total still reaches 8%.

Who has to be automatically enrolled? Your employer must enrol you if you're a worker, aged between 22 and State Pension age, earn at least £10,000 a year and usually work in the UK. You can usually still ask to join if you earn less.

Can salary sacrifice affect other things? Yes. Because your cash salary goes down, it can affect earnings-related benefits such as Maternity Allowance. Ask how the employer handles it if you're planning a family. Our guide to maternity leave and pay explains the different types of pay.

Is a higher employer contribution always better? Not on its own. It's one part of the package, alongside salary, take-home pay and benefits. Comparing the total, as in the example above, gives a fairer picture.

Is there a limit on how much can go into my pension? Most people can have up to £60,000 a year paid in across all their pensions before a tax charge applies. That includes your employer's contributions.

Does my tax code change if I have two jobs? Often, yes. A BR code means all income from that job is taxed at the basic rate, which is common for a second job.