Citizens Advice North Herts helps explains your payslip.
Any organisation you work for must give you a payslip. It’s good practice to check them and keep them for 6 years. If you receive your payslip electronically, it’s a good idea to print or save them. But they can be confusing:
Things you’ll find on a payslip…
Your employer information –usually at the top left-hand side of the payslip, where you’ll find your employer’s details.
Your personal information –On the middle or right-hand side of the payslip.
Your payroll or employee number
Payment date –this can be monthly, weekly and at any date of the month.
Tax period –The tax year starts in April so your payslip might show a tax period.
Your tax code –Your tax code is given by HM Revenue and Customs (HMRC) and is used by your employer or pension provider to work out how much Income Tax to take from your pay. Find out more about your tax code on gov.uk. Make sure you’re not on an emergency tax code otherwise you’ll be taxed more than you need to.
Your National Insurance number –You receive your unique National Insurance Number (NINO) when you turn 16, and this stays the same throughout your life. You need a National Insurance number to work in the UK. Visit gov.uk to apply for your national insurance number.
Payments, wages, bonuses and commission –Your payslip will show how much you’ve earned in wages before any amount is deducted. This is called Gross Pay. Maternity, paternity and adoption pay is usually recorded separately.
Expenses –where your employer will repay work-related expenses through payroll.
Pension –You’re automatically enrolled with your employer’s pension scheme unless you choose to opt-out.
Deductions –These are payments taken from your gross pay such as: Income tax, National Insurance, Childcare, Student loans, Court orders etc
Net pay –this is what you receive after deductions.
Taxable pay
This is the amount of your pay, to date in this tax year, that has been subjected to tax. This will usually appear next to your net pay figure.
