Student Loan plans are calculated on earnings above a certain Threshold.
25/26 Thresholds
Plan 1 Annual threshold = £26,065 (9%)
Plan 2 Annual threshold = £28,470 (9%)
Post Graduate threshold = £21,000 (6%)
(Note: if an employee has 2 student loans assign the one with the lower threshold)
Example: Employee earns £4,500 per month and is paying plan 2 student loan.
£4,500 x 12 = £54,000 Annum
£54,000 - £28,470 (Plan 2 Threshold) = £25,530 above threshold x 9% = £2,297.70 / 12 = £191.48 per month in Plan 2 loan.
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