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FY1
As a junior doctor, graduating this year, you will be paid a basic salary of £21, 862 pa in your first foundation year. You will then be paid extra money on top of this for work over the standard 40 hour week and/or working antisocial or intense hours. You will be paid this as a banding supplement which will be a percentage of your basic salary.
The NHS Careers website states the most common banding supplement currently is 50% meaning that a typical FY1 would earn £32 ,793.
On a salary of £32,793 a year you would have to pay the following:
Tax and national insurance - £8,358.23
Student loan - -£533.73 (from April 2009)
NHS pension - £1,421.03 (6.5% of your basic salary - optional but strongly recommended)
Total deductions = £10,312.99
You could expect to take home £22,480 a year or £1,873.33 a month.
FY2
In the second foundation year the basic salary goes up to £27, 116 pa meaning that with a 50% banding supplement the annual salary rises to £40,674.
On a salary of £40,674 a year you could expect to pay the following:
Tax and national insurance - £10,737.94
Student loan - -£2,310.66 (full year)
NHS pension - £ 1762.54 (6.5% of your basic salary – optional but highly recommended)
Total deductions = £14,811.14
You could expect to take home £25,862.86 a year or £2,155.24 a month.
European Working Time Directive
Currently junior doctors are allowed to work up to 56 hours a week. Due to laws laid down by the European Parliament this will be reduced to 48 hours a week in 2009. You will still be able to achieve a 50% banding supplement working 48 hours by working intense or antisocial hours. However the new laws may effect how easy it is to reach this banding supplement. It will no longer be possible to reach an 80% banding supplement as it is currently as this can only be achieved by working over 48 hours a week.
Student loans
· If you graduate this year then you will start paying back your Student Loan in April 2009.
· You have to pay back 9% of your gross income over £15 000. This means that in your first foundation year on a typical salary of £32 793 you would be paying back £133.45 a month, once repayments started.
· You do not need to worry about making loan repayments – the money is automatically taken out of your wages by HMRC and given to the Student Loan Company.
Other debts
· If you have loans such as Professional Study Loans now is the time to start paying them back. Your loan provider may contact you to arrange repayments.
· Do a financial plan to work out how much you can afford to pay back. Remember the longer it takes to pay back the more interest you will have to pay, but at the same time you must ensure you have enough money to live off.
· For loan repayments set up direct debits to go out the day after you get paid so that you do not have the chance to spend the money or forget to pay it.
See Paying off my debts as a junior doctor for more information on salaries and student loan and debt repayments.
See Case study – paying it back to see an example of a junior doctor paying off debts.
You can use our debt calculator to work out how long it will take you to pay off debts at a certain rate and how much interest you will end up paying.
Housing
Junior doctors in their foundation years no longer get free accommodation. You will probably have to continue to live in privately rented accommodation until you buy a house.
See
House Hunting for important information to bear in mind when renting a house. The same rules apply to graduates as to students.
Mortgages
Once you have graduated and started work you may decide you are in a position to buy a house. You can do this alone, with a partner or with friends.
See Martin Lewis’s guides to: http://www.moneysavingexpert.com/mortgages
Benefits
You can claim these as soon as your course finishes.
See Course finished? for more information.
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