Payslips explained

Unless you’re a freelancer (or a merchant seaman…weirdly) your employee rights state that you’re entitled to a monthly payslip. Essentially, a payslip is a summary of your monthly income. It shows how much you’ve been paid in total and how much has gone towards tax, national insurance and pension contributions. If you’re a university graduate, it’ll also show your student loan repayments.

 

 

Your pay slip must always display:

  • Gross pay – this is your full pay before any tax or National Insurance has been taken off, including any bonuses and commission
  • Variable deductions – this refers to the deductions that could change each payday, and will show the amount that’s being paid. It includes tax and National Insurance
  • Fixed deductions – these are the deductions which don’t change from payday to payday. An employer doesn’t have to give details of what these deductions are for, as long as they give a separate statement with these details at least once a year. It could include union dues
  • The total amount of take-home pay – the amount displayed is after all deductions have been taken off
  • The amount and method for any part payment of wage – this could refer to separate figures of a cash payment and the balance credited to a bank account

Information sourced from the Reed website