Employers are required to deduct student loan repayments through the PAYE system when an employee completes a Tax code declaration (IR 330) using one of these codes: M SL, ME SL, S SL, SH SL, SB SL or ST SL.

Employees with student loans who only have one main job should use the M SL or ME SL tax code.

This code includes student loan deductions which are set at 12 cents in the dollar for every dollar earned over the repayment threshold:

Threshold period Threshold 1 Apr 2018 to 31 Mar 2019 Threshold 1 Apr 2019 to 31 Mar 2020 Increase
Annual $19,448.00 $19,760.00 $312.00
Weekly $374.00 $380.00 $6.00
Fortnightly $748.00 $760.00 $12.00
Four weekly $1,496.00 $1,520.00 $24.00
Monthly $1,620.66 $1,647.00 $26.00

Employers also need to deduct student loan repayments at this rate from redundancy and lump sum payments.