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Updated for 2025/26

£20,994 vs £25,994 Salary Comparison

Compare a £20,994 salary against £25,994. Find out exactly how much more (or less) you will take home after tax.

Gross Difference
+£5,000
per year
Take Home Extra
+£300.00
per month
You Keep
72%
of the raise
5-Year Gain
+£18,000
cumulative

Entry-Level Career Progression

This comparison is typical for early career moves or first promotions. At this salary range, most of your income is taxed at the basic rate (20%), so you keep a higher percentage of any raise.

  • Negotiate hard - you keep ~70-80% of any increase at this level
  • Consider employers offering good pension matching (often worth more than small salary differences)
  • Look for roles with clear progression paths to higher bands
  • Factor in benefits like free lunches, gym memberships, or transport subsidies

Compare Salaries

Enter multiple salaries to compare take-home pay for 2025/26

£
£

Comparison Results

Metric£20,994£25,994Difference
Gross Salary£20,994£25,994£5,000
Income Tax£1,685£2,685£1,000
National Insurance£674£1,074£400
Pension£0£0£0
Take-Home Pay (Yearly)
£18,635
£22,235
£3,600
Take-Home (Monthly)£1,553£1,853£300
Effective Tax Rate11.2%14.5%3.2%

£20,994

Gross£20,994
Take-Home£18,635
You Keep88.8%

£25,994

Gross£25,994
Take-Home£22,235
You Keep85.5%

Tax Band Analysis

Understanding where your money goes

£20,994

Tax BandBasic Rate
Marginal Rate20%
Income Tax£1,684.80
National Insurance£673.92
Take Home (Monthly)£1,552.94

£25,994

Tax BandBasic Rate
Marginal Rate20%
Income Tax£2,684.80
National Insurance£1,073.92
Take Home (Monthly)£1,852.94

What £300.00 Extra Buys You

Real-world value of the take-home difference

Monthly Subscriptions
Netflix, Spotify, gym - £100.00/mo
Weekend Breaks
1-2 UK getaways per month at this budget

Full Comparison: £20,994 vs £25,994

£20,994

  • Gross Pay£20,994.00
  • Take Home (Year)£18,635.28
  • Take Home (Month)£1,552.94
  • Effective Tax Rate11.2%

£25,994

  • Gross Pay£25,994.00
  • Take Home (Year)£22,235.28
  • Take Home (Month)£1,852.94
  • Effective Tax Rate14.5%

The difference in take-home pay is £3,600 per year, which works out to £300.00 per month.