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Updated for 2025/26

£38,488 vs £42,988 Salary Comparison

Compare a £38,488 salary against £42,988. Find out exactly how much more (or less) you will take home after tax.

Gross Difference
+£4,500
per year
Take Home Extra
+£270.00
per month
You Keep
72%
of the raise
5-Year Gain
+£16,200
cumulative

Mid-Career Sweet Spot

This salary range often represents strong mid-career positions. You're still entirely in the basic rate tax band (20%), making raises very tax-efficient.

  • Salary sacrifice for pension can be very efficient at this level
  • Consider hybrid or remote roles - commuting costs can eat into raises
  • This is often the best time to change industries for a salary bump
  • Skills training and certifications can lead to significant jumps

Compare Salaries

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

£
£

Comparison Results

Metric£38,488£42,988Difference
Gross Salary£38,488£42,988£4,500
Income Tax£5,184£6,084£900
National Insurance£2,073£2,433£360
Pension£0£0£0
Take-Home Pay (Yearly)
£31,231
£34,471
£3,240
Take-Home (Monthly)£2,603£2,873£270
Effective Tax Rate18.9%19.8%1.0%

£38,488

Gross£38,488
Take-Home£31,231
You Keep81.1%

£42,988

Gross£42,988
Take-Home£34,471
You Keep80.2%

Tax Band Analysis

Understanding where your money goes

£38,488

Tax BandBasic Rate
Marginal Rate20%
Income Tax£5,183.60
National Insurance£2,073.44
Take Home (Monthly)£2,602.58

£42,988

Tax BandBasic Rate
Marginal Rate20%
Income Tax£6,083.60
National Insurance£2,433.44
Take Home (Monthly)£2,872.58

What £270.00 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: £38,488 vs £42,988

£38,488

  • Gross Pay£38,488.00
  • Take Home (Year)£31,230.96
  • Take Home (Month)£2,602.58
  • Effective Tax Rate18.9%

£42,988

  • Gross Pay£42,988.00
  • Take Home (Year)£34,470.96
  • Take Home (Month)£2,872.58
  • Effective Tax Rate19.8%

The difference in take-home pay is £3,240 per year, which works out to £270.00 per month.