Firstly, NHS Band 4 Net Pay encompasses a range of essential roles within the healthcare system. These roles
include pharmacy technicians, Nurse Associates, Medical Secretaries, and higher-level
administration positions such as validation or project support officers.
Moreover, It provides opportunities for individuals to contribute their expertise and skills to support the efficient functioning of
healthcare services. We also provide NHS Band 4 net pay calculations for both full-time and part-time positions
to help individuals better understand their take-home income.
Band 4 – 1st Pay Point
(£25,146 per annum)
In light of recent changes, with the recent 5% NHS pay rise implemented from 1st April 2023, the annual salary for a Band
4 employee on the 1st pay point will be £25,146. This translates to a monthly pre-deduction
income of £2,095.50. On the financial front, for instance, as part of their financial obligations, individuals in this pay point will
contribute £125.70 per month towards National Insurance, £161.35 per month towards NHS
Pension contributions, and £177.33 per month towards Income Tax.
Net Pay and Deductions for 1st Pay Point
Therefore, after these deductions, their net (take-home) pay will amount to £1,631.12 per month. However, these figures reflect the changes
in the NHS pay scale and serve as a guide for individuals in Band 4 positions.
“Following the implementation of the 5% NHS pay rise, the pay point for Band 4 has been elevated from £23,949 to £25,146 annually. This represents a substantial increase of £1,197 per year (£0.100 per month). Effective from 1st April 2023, individuals in this pay point can expect a revised net take-home pay of £1,631 per month, reflecting an additional £61.67 resulting from the NHS 5% pay rise. These figures are intended to provide a general overview of the changes in NHS compensation and serve as an informative reference for Band 4 employees.”
| Detail | Amount in pounds (£) |
|---|---|
| Yearly Salary | £25,146 |
| Monthly Gross Salary | £2,095.50 |
| Pension from Oct ’22 | £161.35 |
| National Insurance Deduction | £125.70 |
| Tax Deduction | £177.33 |
| Monthly Net Pay after all deductions | £1,631.12 |
When it comes to retirement planning, the pension rate applied in this scenario is 7.7% and is determined by earnings falling between
£23,949 and £28,223.99 per year. Specifically, regarding Income Tax, a rate of 20% applies to earnings
ranging from £12,570 to £50,270 annually. Additionally, the National Insurance (NI) rate for this
case stands at 12% for monthly earnings falling between £1,048.01 and £4,189. These
calculations are based on the 2023/2024 NHS Pension, National Insurance, and Income Tax
rates, providing an estimate for reference purposes. It’s important to note that these figures
have not been verified by the NHS and may slightly vary. Importantly, individuals are advised to consult
official sources for precise calculations and guidance.
“When considering NHS net pay, the percentage received as take-home pay compared to the total salary amounts to 78%. This implies that, on the whole, for every £1 earned, 78 pence is retained while 22 pence is deducted. This calculation takes into account various deductions such as taxes, pension contributions, and other applicable deductions.”
In terms of career progression, if an individual within this band receives a promotion or moves up from a Band 4 on the 1st pay
point to a Band 4 on the 2nd & final pay point, they would experience an increase in earnings
amounting to an additional £126.26 per month after all deductions. In total, this translates to a
substantial increase of £204.17 overall. These figures take into account various deductions,
including taxes, pension contributions, and any other applicable deductions.
Band 4 – 2nd & Final Pay Point
(£27,596 per annum)
As of 1st April 2023, considering the 5% NHS pay rise, the annual salary for a Band 4 on the
2nd & final pay point will be £27,596. This equates to a monthly income of £2,299.67 before any
deductions are made.
Net Pay and Deductions for 2nd & Final Pay Point
After deductions, including National Insurance contributions of £150.20
per month, NHS Pension contributions of £177.07 per month, and income tax of £215.02 per
month, the net (take home) pay for an individual in this NHS pay point will amount to £1,757.37
per month. These figures are based on the specified rates and serve as an estimate of the
individual’s net income.
“With the 5% NHS pay rise implemented, the annual salary for a Band 4 on the 2nd & final pay point has increased from £26,282 to £27,596. This results in a total raise of £1,314 per year (£0.110 per month). Starting from 1st April 2023, the revised NHS net take-home pay for this pay point will be £1,757 per month, reflecting an increase of £67.70 due to the NHS 5% pay rise. These calculations are approximate and intended to provide a general overview of the expected changes in net income following the pay increase.”
| Detail | Amount in pounds (£) |
|---|---|
| Yearly Salary | £27,596 |
| Monthly Gross Salary | £2,299.67 |
| Pension from Oct ’22 | £177.07 |
| National Insurance Deduction | £150.20 |
| Tax Deduction | £215.02 |
| Monthly Net Pay after all deductions | £1,757.37 |
The pension rate of 7.7% is applicable to earnings falling within the range of £23,949 to
£28,223.99 per year. For income falling between £12,570 and £50,270 per year, the Income Tax
rate is 20%. Additionally, the National Insurance (NI) rate is 12% for earnings ranging from
£1,048.01 to £4,189 per month. Please note that these rates are subject to change, and it is
advisable to consult the latest official guidelines for the most accurate and up-to-date
information regarding pension, tax, and national insurance contributions.
“When considering NHS net pay, the percentage received as take-home pay compared to the total salary is 76%. In practical terms, this implies that for every £1 earned, £0.76 is retained as take-home pay, while £0.24 is deducted for various contributions and deductions. It’s important to note that these figures represent an overall estimation and may vary based on individual circumstances and specific deductions.”
Finally, if an individual in Band 4 on the 2nd & final pay point is promoted to Band 5 on the 1st pay
point, they would experience a monthly increase of £20.96 in their earnings after accounting for
all deductions. This promotion would result in a total increase of £67.58 in their overall income.
Important Note
As a final point to consider, pension contributions are deducted before calculating the tax. As a result, it is possible for an
individual’s earnings (after pension contributions) to fall below the thresholds for the 20%, 40%,
or 45% tax brackets.
This article aims to provide a comprehensive guide on NHS Band 4 net pay, taking into account various deductions and the recent pay rise. Please note that all calculations provided are based on the 2023/2024 NHS Pension, National
Insurance, and Income Tax rates. It’s important to mention that these calculations have not been
verified by the NHS and may vary slightly. The information provided serves as a helpful guide for
NHS workers. For more in-depth information on the NHS pay round for 2023 to 2024, you can refer to this official government publication.
