First Job Starter Checklist

Preparing for your graduate first job

Transitioning from university lectures to a full-time professional role is a major shift. You are moving from a flexible schedule to structured working hours. Your financial responsibilities are about to change significantly. Getting your administrative tasks sorted before your first day will save you a massive amount of stress during your first month.

Before you even step into the office. Your new employer’s human resources department will need specific documents from you. You must prove your right to work in the UK. Usually involves presenting a valid passport or a share code if you are an international graduate. They will also need your National Insurance number and your bank details to ensure you get paid on time.

Understanding your graduate starting salary and taxes

Seeing your first annual salary written on a contract is an exciting moment. However, the number on your contract is your gross pay, which is different from your net pay: the actual money that lands in your bank account each month.

Your take-home pay is calculated after deductions for Income Tax, National Insurance, student loan repayments, and pension contributions. For the 2026/2027 tax year, the standard Personal Allowance is £12,570. You do not pay Income Tax on earnings up to this amount. Any earnings between £12,571 and £50,270 are taxed at the basic rate of 20%. You will also pay Class 1 National Insurance contributions on your earnings.

Worked example: take-home pay on £30,000

Say you land a graduate job at £30,000 a year.

• Your Personal Allowance is £12,570, tax-free.
• That leaves £17,430 of taxable income.
• Income tax at 20% takes £3,486 for the year.
• National Insurance takes approximately £1,394 (at 2026/27 rates).
• Before any other deductions, £30,000 minus £3,486 minus £1,394 leaves £25,120 a year, or roughly £2,093 a month.

To get a precise view of your monthly income and plan your spending, use our Student Budget Calculator. For more advice on managing your new income, visit our Graduate Money hub.

Managing student loan repayments in your first job

Student loan repayments operate like a graduate tax. They are automatically deducted from your salary through the Pay As You Earn (PAYE) system, meaning you never have to manually transfer the money yourself. The amount you repay depends entirely on which repayment plan you are on and how much you earn above a specific threshold.

According to GOV.UK (2026), the Plan 2 repayment threshold for borrowers from England increases to £29,385 from April 2026. If you started your undergraduate course after August 2023, you will be on Plan 5. According to GOV.UK (2026), the Plan 5 repayment threshold is £25,000. For both plans, you repay 9% of everything you earn above your specific threshold.

Worked example: a Plan 2 repayment

Say you are on a Plan 2 loan earning £32,000 a year. The Plan 2 threshold from April 2026 is £29,385, so £2,615 of your salary sits above it. You repay 9% of that, which is £235.35 a year, or £19.61 a month. Smaller than most people expect.

If your income drops below the threshold for any reason, your repayments automatically stop. You can check your exact plan details and track your balance by logging into your Student Finance England account. To run your own numbers based on different starting salaries, try our Student Loan Calculator.

Essential first job starter checklist for your finances

Your first month of work is often the hardest financially. You are working full-time, commuting, and buying lunches. You will not receive your first paycheck until the end of the month. Establishing a solid financial baseline early on is essential.

One of the smartest moves you can make is upgrading your student bank account to a graduate bank account. Student accounts usually come with large 0% overdrafts. If you do not switch to a graduate account, your bank might automatically convert your account to a standard current account. You will suddenly face massive interest charges on your overdraft balance. Graduate accounts typically offer a tiered 0% overdraft that gradually reduces over two to three years, giving you time to pay off your student debt without incurring fees.

To find the best option for your situation, use our tool to Compare Bank Accounts.

Reviewing your employment contract and pension

Never sign an employment contract without reading it thoroughly. Your contract dictates your legal rights, your working conditions, and your compensation. If anything looks wrong, or verbal promises from the interview are missing, raise it with HR before signing.

A checklist of the exact elements you must verify in your new contract:

• Does the job title and description match the role you applied for?
• Is the gross pay correct, and does the contract say whether you are paid on the last working day of the month or a specific date?
• What are your contracted weekly hours, and is there any expectation of unpaid overtime?
• How many days of holiday do you get? The UK legal minimum is 28 days including bank holidays for a full-time worker; many graduate schemes offer 25 days plus bank holidays.
• How much notice must you give to leave, and how much must they give you? It is often shorter during probation.
• How long is the probation period? Three to six months is normal for graduate jobs, with your role confirmed at the end.

You will also be automatically enrolled into a workplace pension if you are aged 22 or over and earn more than £10,000 a year. Under auto-enrolment rules, you contribute 5% of your qualifying earnings, and your employer contributes at least 3%. While retirement seems decades away, opting out of your pension means you are throwing away free money from your employer. The contributions benefit from tax relief, making it one of the smartest ways to save for your future.

Sorting out housing and relocation for work

Many graduates relocate to take up their first professional role. Moving to a new city requires careful planning, especially since you will need to pay a rental deposit and your first month of rent before your first payday.

If you are moving, follow these steps to secure your new home:

1. Work out your budget first. A general rule is to spend no more than 30% of your gross monthly income on rent; our Rent Affordability Calculator shows what you can realistically afford.
2. Research neighbourhoods on commuting time and transport cost, not just rent. A cheaper flat can cost you more once an expensive daily train ticket is added.
3. Find flatmates. Sharing is the most cost-effective way to live in major cities like London or Manchester, and the young-professional flatshare platforms make finding compatible people straightforward.
4. Get your documents ready before viewings: proof of employment, your new contract, and a reference from a previous landlord. Landlords move fast for prepared applicants.

Managing shared expenses with new flatmates can be a headache. To avoid arguments over who owes what for the energy and water, use our Bills Splitter Tool to divide everything fairly. You should also shop around for the best internet deals using our Broadband Comparison Tool.

Building good habits in your first month

Your first few weeks on the job are about absorbing information and building a positive reputation. Arrive on time, dress appropriately for your company’s culture, and do not be afraid to ask questions. Employers expect recent graduates to need guidance. It is much better to ask for clarification than to guess and make a costly mistake.

Take the time to introduce yourself to colleagues outside of your immediate team. Building a strong internal network will help you understand the broader business and can open up opportunities for mentorship. Keep a private document where you record your achievements, positive feedback, and new skills you acquire. This document will be useful when it is time for your probation review or when you eventually update your CV for your next career move.