Understanding Your Payslip

Every employee has the right to be given an itemised statement known as a payslip. This must be issued to you on or before pay day.

Here is a step to step guide on what is shown on a payslip:

  1. Your Personal Information
    Your name, National Insurance number, and sometimes your home address is shown.
  2. Your Payroll Number
    Some payroll software allocates each employee a number, it can be useful to notice this as if you are talking to HMRC they can identify by using this.
  3. Tax Period
    The number here will represent the tax month. 01= April, 12= March. This makes it easy to work out what month the payslip represents.
  4. Date
    This is the date you will receive your NET pay.
  5. Tax Code
    Your tax code will be displayed. It is always a good idea to check it doesn’t change without your knowledge. For more information – Understanding tax codes
  6. Payments
    There will be a section to understand your gross earnings. Gross earnings are before any deductions have been made.
  7. Deductions
    Your payslip must show the amount of income tax and national insurance you have paid.
  8. Pensions
    If your enrolled in a work place pension, then your contribution into the pension scheme must be itemised on the payslip.
  9. Student Loans
    If you are repaying your student loan through the payroll then your repayment amount must be shown.
  10. Court Orders
    If you have any out standing fines or debts to repay then the court can ask for these to be deducted directly from your pay. These will be detailed on your payslip.

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