Understanding your payslip

Not sure what your payslip should look like and what information it should hold? We provide you with an example and breakdown of a typical payslip.

Note

Not all payslips look the same; however, they should all contain similar types of information.

Example payslip:

1 – Personal information, including name, National Insurance number (NINO) and Pay As You Earn (PAYE) Code.

2 – Payments including salary, wages, bonuses and overtime for the pay period.

3 – Deductions including income tax, National Insurance contributions (NIC) and personal pension contributions (if any) for the pay period.

4 – Amounts earned and deductions taken off for the tax year to date, including the current pay period.

5 – Net pay for the pay period – this is the amount you should actually receive. This is your earnings for the pay period less the deductions for the same period.

6 – Tax Reference – this is the employer's PAYE reference, which should be present.

7 – Hours worked – from April 2019, payslips are required to state number of hours being paid where wages vary according to time worked; either as an aggregate number of hours or as separate figures for different types of work (or rates of pay).

Sometimes payslips will show the amounts that your employer has paid in employer NIC for your information on your payslip – but it is not being deducted from your pay.

For help with demystifying the sometimes confusing payslip entries if you work through an umbrella company, see our working through an umbrella company factsheet.

Payslip example