Net Pay

Net pay is the amount of money you take home.  It is calculates as your basic pay add any extras and take away any deductions.

Challenge Example : Jim earns £12 an hour and works 30 hours a week.  He works 6 hours overtime at time and a half.  His pension is £24, his income tax is £54 and his National Insurance is £42.  How much does Jim take home each week?

Basic Pay : 30 x £12 = £360             Income Tax               = £54

Overtime : 6 x £18   = £108             National Insurance = £42

 £468             Pension                     = £24

 £120

Take home pay : £468 - £120 = £348