A practical guide to evaluating UK job offers by total compensation — covering equity, pensions, benefits, tax efficiency, and career value beyond the headline number.
This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax rules and thresholds are subject to change. Always consult a qualified adviser for guidance specific to your circumstances.
You've got two (or more) job offers on the table. One pays £75,000 with stock options, the other offers £85,000 with a generous pension. Which one is actually worth more? The answer is rarely as simple as comparing the salary line.
This guide walks through a practical framework for evaluating UK job offers on their true total value.
A £10,000 difference in gross salary doesn't translate to £10,000 more in your pocket. Depending on your tax band, student loan plan, and pension contributions, the real gap could be significantly smaller.
For example, going from £50,000 to £60,000 gross:
| £50,000 Salary | £60,000 Salary | Difference | |
|---|---|---|---|
| Income tax | £7,486 | £11,486 | £4,000 |
| Employee NI | £4,486 | £4,686 | £200 |
| Student loan (Plan 2) | £1,855 | £2,755 | £900 |
| Take-home | £36,173 | £41,073 | £4,900 |
That £10,000 raise is actually worth £4,900 after deductions — less than half. If the lower-paying offer has better benefits, it could easily be the better deal.
Employer pension contributions are often the most undervalued part of an offer. They're tax-free, NI-free, and compound over decades.
The difference between a 3% and an 8% employer match on a £60,000 salary:
| 3% Match | 8% Match | |
|---|---|---|
| Annual employer contribution | £1,800 | £4,800 |
| Over 4 years | £7,200 | £19,200 |
| Difference | £12,000 |
If the employer offers salary sacrifice, the value is even higher because you save on National Insurance too. A "lower" salary with a strong pension can easily beat a higher salary with a minimal one — you just don't see it on your payslip.
Stock-based compensation (RSUs, options, shares) is increasingly common in UK tech roles. But equity requires careful evaluation:
Vesting schedules matter. Amazon's back-loaded 5/15/40/40 schedule means you receive very little in years one and two. Google and Meta vest more evenly (roughly 25% per year). A £200,000 RSU grant over 4 years could mean anywhere from £10,000 to £80,000 in year one depending on the schedule.
Tax treatment reduces the value. RSUs are taxed as income at vesting — if you're a higher-rate taxpayer, you'll keep roughly 55-60% of the vesting value after income tax and NI.
Stock price is uncertain. The grant value is based on today's share price. By the time your shares vest, the price could be higher or lower. Treat equity at its current value, not at optimistic projections.
Refresher grants stack. Many companies issue annual "refresher" RSU grants. Over a 4-year tenure, these stack on top of your initial grant, significantly increasing your total comp in years 3 and 4.
Some benefits have a direct cash-equivalent value:
Others are harder to quantify but genuinely important:
Total compensation is best compared over a 4-year window, especially when equity is involved. This captures:
A lower starting salary with strong equity and annual refreshers can overtake a higher base salary by year 3 or 4.
Rather than juggling spreadsheets, lay out each offer with these components:
| Component | Offer A | Offer B |
|---|---|---|
| Base salary | ||
| Annual bonus (at target) | ||
| Equity (annual vesting value) | ||
| Employer pension contribution | ||
| Benefits cash value | ||
| Total comp (pre-tax) | ||
| Estimated take-home |
OfferEval's offer comparison tool is built for exactly this kind of analysis. Enter up to 5 offers with base salary, equity grants, vesting schedules, pension contributions, and bonuses. It calculates net income using UK 2025/26 tax rules — including income tax, NI, student loans, pension contributions, and the personal allowance taper — so you see the real after-tax value of each offer across a 4-year projection.
Stop guessing which offer is better. Compare them properly.
Use our free calculator to get an instant net income breakdown for any UK salary — including tax, NI, student loans, and pension.
Try the calculatorWritten by OfferEval Team
Helping professionals understand UK tax and make smarter career decisions.