Salaried v Non-Salaried:- The real finance story
A Salaried trainee can expect to be paid the unqualified teacher salary of £18,419*
From this, expect to be deducted £1,168 in tax, £1,131 in National Insurance** and £1198 teacher’s pension at 7.4% = £3497.
So, for the 12 month Salaried contract you will be paid £18,419 – £3497 = £14,922.
*September 2021 figures.
** New NI rates to be implemented from 1st April 2022.
A Non-salaried trainee can expect a maintenance student loan of up to £12,383.
For most non-salaried trainees, school are employing them from 1st July in the year that they qualify. (please check with your employing school) So,
Added to this is 2 months X £1737 (after deductions) full teachers pay = £3,474 plus an extra £1,141 tax rebate for not working between April 1st and June 30th = £4,615
So, for the 12 month academic year you will be paid £12,383 + £4,615 = £16,998.
So, for those who commence full time employment as an ECT from 1st July 2023 and are willing to take the student loan you will be £39.92 per week financially better off than someone following the salaried route.
Even if you do not take full time employment until 1st September you will still be entitled to a tax rebate for not working between April 1st and August 31st = £1,903 giving you a total financial package of £12,383 + £1,903 = £14,288. A difference between the salaried v non-salaried of just £12.19 per week
MVTP STRONG ADVICE
Think VERY carefully about taking a salaried position over a non-salaried with any provider. MAKE SURE that you are clear on the full financial package on offer. With the student loan, it is likely that you will be financially better off following the far gentler non-salaried route into teaching with significantly more immediate in-school support during your training year.
In addition, those applicants whose subject attracts tax free bursary would need the employing school to pay nearly double the unqualified salary to match their potential earnings through the non-salaried route
PLEASE NOTE THAT IT IS THE APPLICANT’S RESPONSIBITY TO CHECK THESE FINANCIAL FIGURES WITH AN INDEPENDENT FINANCIAL ADVISOR OR LOCAL TAX OFFICE. MVTP DOES NOT ACCEPT ANY RESPONSIBILITY FOR ANY INACCURACIES.