Student loan deductions can vary based on the employee's earnings and the plan type assigned. If the employee's earnings are above the threshold for their plan, the student loan pay element will deduct 9% of their earnings over the threshold. The four plan types and their thresholds are below.
2025/2026 | Weekly | Monthly | Annually |
Plan 1 | £501 | £2,172 | £26,065 |
Plan 2 | £547 | £2,372 | £28,470 |
Plan 3 | £629 | £2,728 | £32,745 |
Plan 4 | £480 | £2,083 | £25,000 |
Examples of calculating a student loan deduction are available from HMRC.
Possible causes
Repaying student loan checkbox is not selected.
An attachment of earnings brings the employee's salary lower than the threshold.
The employee doesn't have sufficient earnings in the current period.
An end date for student loans has been surpassed.
An incorrect student loan start date has been entered.