Every employee has the right to know how much they will be paid and how often. If you are employed and get paid, you should get a payslip every week, fortnight or month, depending on how your employer pays your wages or salary.
Payslips can get quite complicated, so check out the moneyfacts.co.uk basic guide to understanding this important document.
For more information on your payslip, check out the official gov.uk website Payslips: Your rights.
If you are employed you should get a payslip either every week, fortnight or month depending on how your employer pays you. Payslips can get quite complicated, so check out our basic infographic to understanding your payslip.
Employee Number & NameThis is the internal identification number your employer gives you.
National Insurance (NI)Your National Insurance entitles you to certain state benefits including a state pension. Your NI will be deducted directly from your wages by your HR department.
SalaryThis is the amount you have earned before any deductions have been made. Your employer may break this down into components if you have done overtime or received a bonus/ commission.
PAYE TaxIncome tax will be deducted straight from your wages by your employer. How much you pay depends on your Personal Allowance and the amount you earn.
Pension ContributionYou probably participate in an occupational pension scheme particularly now auto enrolment has been implemented. If you do participate your tax-free deductions will be shown in the 'Deductions' column.
Other DeductionsIf you are repaying a Student Loan it will be deducted from your wages. There can also be other deductions such as charity donations or Christmas savings club, for instance.
This PeriodThis Period shows you the total pay, tax and National Insurance you have paid in the last week or month, depending on when you last received a payslip.
Year to DateYear to Date shows you the total amount of Pay, Tax and National Insurance you have paid in the current tax year to date.
Tax CodeYour Tax Code is very important as it tells your employer how much tax to deduct from your pay. If your tax Code is wrong you could be paying too little or too much tax. Visit the HMRC website for more information on tax Codes.
Tax PeriodThe Tax Period relates to when this payslip is issued in the tax year (6th April to the following 5th April). E.g. 7 would indicate the seventh month into the tax year.
Net PayThis is the sum of money you will actually be paid after all deductions have been made. Payment methods vary i.e. cash or cheque but they are usually made by BACS transfer.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.