Loan deductions are calculated as a percentage of employee earnings above an earnings threshold, subject to Class 1 National Insurance contributions.
Once the earnings threshold is reached, employers only need to use one student loan plan (SLP1, SLP2, or SLP4) through payroll, even if an employee has multiple loans. A postgraduate loan can be used alone or alongside one of the student loan plans.
| Date | Plan Type 1 Threshold | Plan Type 1 Rate | Plan Type 2 Threshold | Plan Type 2 Rate | Post- grad Threshold | Post- grad Rate | Plan Type 4 Threshold | Plan Type 4 Rate |
| 6th April 2023 | £22,015 | 9% | £27,295 | 9% | £21,000 | 6% | £27,660 | 9% |
| 6th April 2024 | £24,990 | 9% | £27,295 | 9% | £21,000 | 6% | £31,395 | 9% |
| 6th April 2025 | £26,065 | 9% | £28,470 | 9% | £21,000 | 6% | £32,745 | 9% |