Understanding first payslip deductions, Plan 5 repayment start timeline, and managing graduate salary expectations
Graduating in June, starting a £30,000 job in September—many graduates are shocked to see student loan deductions appear on their first payslip. Under Plan 5, repayments begin the April after you finish studying, OR when you start earning above £25,000, whichever comes later. Your employer deducts 9% above the threshold automatically via PAYE.
Graduate June 2024, start earning £30k in September 2024: Repayments begin April 2025. Graduate June 2024, start earning £30k in May 2025: Repayments begin immediately (earning above threshold after April graduation date).
£30k salary: £25k threshold = £5k above. 9% of £5k = £450 annual deduction = £37.50 monthly. This appears on your payslip as SL or Student Loan alongside tax and National Insurance. Calculate yours: (Annual Salary - £25,000) × 0.09 ÷ 12 = Monthly payment.
UK Education Policy Specialist
With over 15 years of experience in UK education policy and student finance, Dr. Sharma founded Student Loan Calculator UK to help students navigate the complex world of student loans.