Unpaid Leave Impact Calculator UK 2025/26
Unpaid Leave Impact Calculator UK
Calculate Salary Deductions • 2025/26 Tax Rates • Real Take-Home Impact
💼 Calculate Your Impact
Your gross annual salary before tax and deductions
How often you receive your salary
Your normal working pattern
Total unpaid leave days you’re taking (can be decimal)
Your tax code (default 1257L for 2025/26)
Your pension contribution percentage (typically 5%)
📚 Understanding Unpaid Leave
✅ Key Facts:
✓ Gross deduction is your daily rate × unpaid days
✓ You save on income tax (20%, 40%, or 45%)
✓ You save on National Insurance (8% or 2%)
✓ Real impact is LESS than gross deduction
✓ Pension contributions also reduce
✓ Affects your annual earnings
✓ You save on income tax (20%, 40%, or 45%)
✓ You save on National Insurance (8% or 2%)
✓ Real impact is LESS than gross deduction
✓ Pension contributions also reduce
✓ Affects your annual earnings
⚠️ Important Notes:
• No automatic right: Unless for emergencies
• By agreement: Employer must approve
• Contract terms: Check your policy
• Notice required: Give adequate warning
• Annual leave first: Use paid leave before unpaid
• Pension impact: Reduces retirement savings
• By agreement: Employer must approve
• Contract terms: Check your policy
• Notice required: Give adequate warning
• Annual leave first: Use paid leave before unpaid
• Pension impact: Reduces retirement savings
💰 2025/26 Tax Rates:
- Personal Allowance: £12,570 (0% tax)
- Basic Rate: £12,571-£50,270 (20%)
- Higher Rate: £50,271-£125,140 (40%)
- Additional Rate: Over £125,140 (45%)
- NI Rate: 8% up to £50,270, then 2%
Actual Take-Home Pay Reduction
£0
After tax and NI savings
Gross Deduction
£0
Tax Saved
£0
NI Saved
£0
Daily Rate
£0
📊 Financial Breakdown
💷 Detailed Financial Impact
🔍 How Unpaid Leave Calculations Work
📐 Calculation Formula:
- Step 1: Daily Rate = Annual Salary ÷ (52 weeks × Working Days/Week)
- Step 2: Gross Deduction = Daily Rate × Unpaid Days
- Step 3: Tax Saving = Gross Deduction × Your Tax Rate (20%, 40%, or 45%)
- Step 4: NI Saving = Gross Deduction × Your NI Rate (8% or 2%)
- Step 5: Net Impact = Gross Deduction – Tax Saving – NI Saving
⚖️ Your Employment Rights:
When you CAN take unpaid leave:
- Emergency time off: For dependants’ illness or urgent care needs (statutory right)
- Parental leave: Up to 18 weeks unpaid per child (until child turns 18)
- By agreement: Employer can agree to unpaid leave requests
- Compassionate leave: Many employers offer this (check your contract)
- Extended career break: Some employers have formal schemes
- For holidays (use annual leave entitlement first)
- Without employer agreement (except emergencies)
- As alternative to sick leave
💡 Smart Money Tips:
- Plan ahead: Budget for the reduced take-home pay
- Tax timing: Taking unpaid leave in higher-earning months saves more tax
- Pension impact: Consider maintaining voluntary contributions
- Benefits check: Unpaid leave may affect some salary-linked benefits
- Spread it out: Several single days may have less impact than consecutive weeks
- Annual leave first: Always use paid leave before unpaid
📞 Get Help:
• ACAS Helpline: 0300 123 1100 (employment rights advice)
• Citizens Advice: Free guidance on unpaid leave rights
• Your HR Department: Check company policy and entitlements
• Union Representative: If you’re a member
• Citizens Advice: Free guidance on unpaid leave rights
• Your HR Department: Check company policy and entitlements
• Union Representative: If you’re a member