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Joyce Kim

Joyce is a content writer at PayslipsP60 and she has a wealth of experience within the Payroll and bookkeeping. Passionate about providing website visitors with informative and easy-to-understand content, Joyce is committed to helping PayslipsP60 find the best solutions for their needs. With a flair for writing, Joyce 's content engages and educates readers, guiding them towards informed decisions.

Payslips explained

A payslip is a document an employer provides on or before payday. It details an employee’s gross earnings, itemized deductions (like tax and National Insurance), and final net take-home pay.

A typical payslip provides a breakdown of your earnings and deductions over a specific pay period, as well as year-to-date (YTD) totals. Key information found on a standard payslips includes:

  • Gross Pay: Your total earnings before any deductions are made.
  • Deductions: Itemized amounts taken from your pay, such as Income Tax, National Insurance contributions, workplace pension contributions, or student loan repayments.
  • Net Pay: The final amount of money you actually take home.
  • Tax Code: A code (e.g., 1257L) that dictates how much tax-free income you are allowed to earn in a tax year.
  • National Insurance Number: Your unique identifier for the tax and benefits system.

Legal Requirements and Your Rights to Payslips

In the UK, all employees and workers have a legal right to receive an itemised payslips. Employers can issue these as printed paper documents or electronically (e.g., as a PDF or through a secure online payroll portal). For employees whose pay varies depending on the time worked, the payslips must also detail the total number of hours worked.

Importance and Uses

Beyond verifying that you have been paid the correct amount, payslips are vital personal finance documents used as official proof of income. You will almost always be required to present recent payslips when:

  • Applying for a mortgage or buying a home
  • Renting a property or undergoing tenant referencing
  • Applying for loans, credit cards, or other forms of financing
  • Filing a self-assessment tax return

For comprehensive details on employee rights or to learn how to securely manage your documents, visit the official GOV.UK Payslips Guide. If you identify any errors or need to clarify your deductions, speak with your employer.

Employee rights to Payslips

Your employer must provide you with  payslips. They do not have to do this if you’re:
  • not an employee or ‘worker’, for example a contractor or freelancer
  • in the police service
  • a merchant seaman
  • a master or crew member working in share fishing (paid by a share in the profits or gross earnings of a fishing vessel)
Your payslips can be used as proof of your earnings, tax paid and any pension contributions. Employers can choose whether they provide printed or electronic (online) payslips. Payslips must be provided on or before payday.

What should be on your payslips

Your payslips must show:
  • your earnings before and after any deductions
  • the amount of any deductions that may change each time you’re paid, for example tax and National Insurance
  • the number of hours you worked, if your pay varies depending on time worked
Employers must also explain any deductions fixed in amount, for example repayment of a season ticket loan. They can choose to do this either on the payslips, or in a separate written statement. This separate statement must be sent out before the first payslip. Employers must update this every year.

When you get payslips

Payslips are given on or before the day someone gets paid. They show:

  • how much pay they’re getting for a certain time period
  • ‘deductions’ this is what has been taken from their pay, for example tax and National Insurance (NI)

The payslips can be:

  • given as a paper document
  • sent as an email attachment
  • in an online system

If an employee is unable to access their payslips online, their employer should provide them in a different format, for example paper copies. 

Payslips can also be called ‘wage slips’ and ‘itemised pay statements’.

An employer must keep a record of any hours worked or payments made in the last 6 years. An employee, worker or the National Minimum Wage enforcement agency can ask them for these if they believe the employer is not paying minimum wage.

Who has the right to have payslips

By law (Employment Rights Act 1996), employers must give all their employees and workers payslips from their first payday.

Workers can include people on zero-hours contracts and agency workers.

Agency workers get their payslips from their agency.

People who are self-employed do not get payslips. This is because they are responsible for paying their tax and other deductions themselves.

However, if they get employed through an agency, they could become an employee or worker. If that happens the agency must give them payslips for the duration of the job.

Other types of work where people are not entitled to payslips by law are:

  • the armed forces
  • police
  • merchant seamen and women
  • where they get paid by a share in the profits or gross earnings of a fishing vessel

However, these groups often receive payslips through other arrangements.

What must be in payslips

payslips must include:

  • the ‘gross amount’ – this is the total pay before deductions
  • the ‘net amount’ – this is the total pay after deductions
  • any variable deductions – this is where the amounts depend on the amount of pay, for example tax, National Insurance, student loan repayments and pension contributions
  • a breakdown of how the wages will be paid if more than one payment method is used – for example bank transfer and cash
  • the amounts of any fixed deductions – for example trade union subscriptions

Fixed deductions can be given in a separate statement, known as a ‘standing statement of fixed deductions’. It should include:

  • what the deduction is for
  • how much it is
  • how often it’s paid

If the standing statement is separate from the main payslip, it’s only valid for 12 months. It must be reissued every year, or earlier if the fixed deductions change. 

The payslips might also have the:

  • time period the pay covers
  • tax code of the employee or worker

If someone’s hours are different between pay periods on Payslips

If someone’s hours often change from one pay period to the next, they might be employed on a ‘variable hours’ contract. This might be if:

  • they worked overtime
  • the number of hours they work changes in each pay period

An employer must record variable hours on the payslips. How they record this will depend on the working arrangement.

If someone’s hours vary week to week

If someone’s hours can change from one week to the next, their employer must include all their hours on the payslips.

For example, Sam’s weekly pay depends on how many hours they worked that week. All hours Sam works must be included on the payslips, because all of the hours are variable.

If someone has fixed salaried hours

Someone might have fixed salaried hours but also work some variable hours. For example, someone works fixed hours each week, but also does some overtime.

In this case, the payslips needs to record:
  • what variable hours were worked and what was paid for those
  • the total amount paid for fixed hours – it does not need to record what the fixed hours are

For example, Cameron works 40 hours per week and has a fixed salary for this. They work 5 hours overtime. Their payslips does not need to record the fixed 40 hours. It must record the 5 hours overtime, because they are variable. The payslips must record the pay for both the fixed hours and the variable hours.

If someone gets different rates of pay for different types of work

Someone might work variable hours and get different rates of pay for different types of work. For example, if someone’s weekly hours vary and they get additional pay for unsociable hours they work.

If this is the case, the employer should break the hours down to show the number worked at each different rate of pay.

Problems with payslips

It’s good practice for employers to make sure staff get their payslips before payday. This means that if there are any delays or errors, there’s time to sort them out.

If a payslip is not correct

If an employee or worker thinks there’s an error in their payslips, they should speak to their manager, payroll team or employer as soon as possible. It’s usually best to raise the problem informally by talking to their employer.

If they’ve already tried to resolve things informally, they can raise a grievance. This is where they make a formal complaint to their employer.

Find out more about deductions from pay and wages

If someone does not get a payslips

If an employee or worker does not get their payslips when expected, they should check with their manager, payroll team or employer as soon as possible.

If they’ve tried to resolve things informally, they can raise a grievance. This is where they make a formal complaint to their employer.

If the employee or worker still does not get a payslips, they can make a claim to an employment tribunal

Payslips info for employers

You must give your employees and your ‘workers’ payslips on or before their payday.

What to include

Payslips must show:

Payslips can also include information like your employee’s National Insurance number and tax code, their rate of pay, and the total amount of pay and deductions so far in the tax year.

Producing payslips

You may be able to produce payslips using your payroll software, if it has this feature. You can use different software if it does not.

You can either print payslips to give to your employees, or you can send them electronically.

Your right to get payslips

All employees and workers are entitled to an individual, detailed written payslips, on or before, they’re paid. Your written payslips doesn’t have to be on paper, it can be sent to you by email or accessed through a website. The right to get payslips applies to casual staff as well as employees. It doesn’t apply to independent contractors or people working freelance.
 


What information your payslips must contain

Your payslips must show the information below.

  • Gross pay. Your full pay before any tax or National Insurance has been taken off.
  • The total amount of take-home pay after deductions. This is called your net pay.
  • The amounts of any deductions that change from payday to payday, and what the deductions are for. These are known as variable deductions. They include tax and National Insurance.
  • The total amount of any fixed deductions. These are deductions that don’t change from payday to payday – for example, union dues. An employer doesn’t have to give details of what these deductions are for, if they give a separate statement with these details at least once a year.
  • The amount and method of any part payment. For example, separate figures of a cash payment and the balance credited to a bank account.
  • The number of hours worked if your pay varies by the amount of time worked.
Your employer might include extra information on your payslips which they don’t have to provide. For example, your:
  • tax code
  • National Insurance number
  • pay rate (annual or hourly)
  • extra payments, such as overtime, tips or bonuses. These must be included in your gross pay figure.
 
Understanding your payslips
 

1. Your personal information

Your name, and sometimes your home address, will be shown.

 

2. Your payroll number

Some companies use payroll numbers to identify individuals on the payroll.

 

3. Date

The date your pay should be credited to your bank account is usually shown.

 

4. Tax period

The number here represents the tax period for that payslips. For example, if you’re paid monthly, 01 = April and 12 = March.

 

5. Your tax code

Your tax code will be sent to you by HMRC. The code tells your employer how much tax-free pay you should get before deducting tax from the rest. If the code is wrong, you could end up paying too much or too little tax. So it’s important to check this against your latest tax code notice.

 

6. Your National Insurance number

You must have a National Insurance number to work in the UK. You have the same NI number throughout your life – even if you change your name. It’s your personal number for the entire social security system. It’s used to make sure all your contributions are recorded properly and helps to build up your entitlement to benefits – such as a pension.

 

7. Payments, wages, bonuses and commission

This will show how much you’ve earned in wages before any deductions are made. It might also show how your pay was calculated. For example, your hourly rate and the number of hours worked. It could also show any extra payments you’ve earned on top of your basic pay, such as like bonuses, commission or overtime.

 

8. Expenses

Your employer might pay any expenses owed to you via the payroll. Some employers will list each expense payment separately on the payslips. Others combine them to show a taxable or non-taxable amount.

 

9. Deductions – tax and National Insurance

Your payslips must show the amount of variable deductions, such as tax and National Insurance

 

10. Pensions

If you’re paying towards a workplace pension that your company has set up or arranged access to, the amount you’re contributing will be shown. If your employer is contributing too, that amount might also be shown.

11. Student loan

If you’re making repayments on a student loan, this will be shown on your payslips. If you’re an employee, you’ll usually start making student loan repayments from the April following the date you graduate or leave your course. HMRC will tell your employer how to work out and deduct the right amount. Once a year, HMRC tells the Student Loans Company what has been repaid. This means it’s a good idea to keep your payslips and P60 as a record of the repayments in case of any problems. Some employers put running totals of tax and deductions on your payslips. These are particularly useful for keeping track of your total student loan repayments.

 

12. Court orders and child maintenance

A court can order deductions directly from your pay. For example, for unpaid fines or for debt repayments to be handed to your creditors. The Child Maintenance Service (CMS) can also ask for a Deduction from Earnings Order for the maintenance of a child. If these orders are made for deductions, the employer can, if they choose, take an extra £1 as an administration fee. This fee can only be charged if a deduction or partial deduction has been made. Employers often waive the fee. But if they deduct it, it must be shown separately on the payslips with a description.

13. Sick pay

What’s shown on your payslips will depend on how long you’ve been ill and your company’s sick pay policy. Your employer is liable to pay you Statutory Sick Pay if you’re off work sick for four days or more in a row, and you meet certain conditions. Statutory Sick Pay is treated like the wages or salary it replaces. So your employer will make deductions for things like tax, National Insurance and student loans. Under your contract, you might also be entitled to occupational sick pay. This will usually be shown as a separate figure – any Statutory Sick Pay is likely to be deducted from occupational sick pay.

 

14. Maternity, paternity and adoption pay

Are you a mother who isn’t at work because you’ve just had a baby and you’re getting Statutory Maternity Pay? Then this will be shown on your payslips. You might also receive maternity pay, which will usually be shown separately. If parents choose to share time off, and take Shared Parental Leave, they might be paid Shared Parental Pay. If a child is adopted, Statutory Adoption Pay will be paid to the new parent staying at home for a period after the adoption. If a couple jointly adopts, the other partner can be eligible for Additional Statutory Paternity Pay. Again, you must meet certain conditions to be able to qualify for these payments. They’re all treated in the same way as ordinary earnings for tax and National Insurance.

 

15. Workplace benefits

Do you get health insurance through your workplace or have a company car? Then these will be listed on your payslips and can affect your tax code. It might also show repayment of season-ticket loans, cycle-to-work scheme loans and charitable donations (using the give-as-you-earn scheme). If you’ve signed up for one of these, it should show up on your payslips

16. Other deductions

Any other deductions, such as trade union subscriptions, should be shown.

 

17. Summary of the year to date

Your payslips might show how much you have been paid so far in this financial year. A financial year runs from 6 April to 5 April. It might also show totals for how much you’ve paid in tax, National Insurance, student loans and pensions.
 

18. Net pay – what’s left

For many people, the most important figure on their payslips is net pay. So, what is net pay? It’s the amount you get when all the deductions have been made. It’s a good idea to check this against your bank statement to make sure it matches what’s paid in.

 

19. Important messages

Some employers use a space on the payslips for important messages. These might give you extra information about your pay or other information they want to share.
 
What is a tax code?
 

The amount of tax you pay depends on:

  • how much income you have
  • how much tax you’ve already paid in the year
  • your Personal Allowance.

Different people have different tax codes, depending on their circumstances. Every year, HMRC sends out a Coding Notice. This tells you what your tax code is and how much tax you’ve paid. You can also find your tax code on your payslips. It’s usually made up of a few numbers and a letter.

How is my tax code worked out?

Your tax code is usually the amount you can earn without paying tax, divided by 10, with a letter added. For example: Tax code: 1257L 1257 becomes £12,570 earned before tax.

 

My tax code starts with BR

This means you’re not getting your tax-free basic personal allowance – so all your income is being taxed at the basic rate of 20%. This can happen if your employer doesn’t have all the information and they need to work out your tax code. It doesn’t always mean you’re paying the wrong amount of tax. For example, you might have two jobs and HMRC have allocated your personal allowance against one of these.
 

My tax code has no number, or starts with D followed by a number

This is usually because you have more than one source of income. Your Personal Allowance is used up on your main income source, and you pay tax on everything you earn from your second income source. For example, you might work a main job during the day and do shifts in a pub or work in a factory in the evenings. If you earn more than £12,570 a year (for 2025/26) in your main job, your second job will be taxed at the basic rate. This can also apply to pensions or money paid out by investments (dividends).

 

My tax code starts with K

This means you have tax from the past you still need to pay, or you get money or benefits that can’t be taxed before you receive it. For example, a State Pension or company car. From this, your employer can work out how much should be paid towards what you owe. The amount you pay will never be more than half the amount you’ve earned or received during the pay period. Regardless of whether that’s monthly, weekly or another period. 

 

What is an emergency tax code?

Sometimes your tax code isn’t right for your circumstances and you might be given an emergency code. An emergency tax code assumes that you’re only entitled to the basic personal allowance. It’ll mean you’ll pay tax on all your income above the basic personal allowance (£12,570 for 2026/27). It won’t take into account any allowances or reductions and reliefs you might be entitled to. This could mean you pay more tax than you should for a short period of time. For 2026/27, the emergency tax codes are:

  • 1257L W1
  • 1257L M1
  • 1257L X.

You might be put on an emergency tax code if:

  • you’ve started a new job
  • you’ve started working for an employer after being self-employed, or
  • you’re getting company benefits or the State Pension.

If your tax code is one of these, HMRC will automatically update it. But it might mean that for one or two months your pay won’t be the same, so be careful with your budgeting.

How do I check my tax code?

To make sure you’re on the right tax code, check your code matches the Personal Allowance you should be getting

What do I do if I think my tax code is wrong?

If you think your tax code is wrong, or if you’re in any doubt, contact HMRC. It’s important you give them all the information they ask for so you don’t end up on the wrong tax code and pay too much or too little tax.

If you think you’ve paid too much tax

It’s worth checking how much tax you’ve paid on your wages.
Depending on your circumstances, you might be able to ask for a refund using a form, or you might need to contact HMRC.

If you think you haven’t paid enough tax

If you think you’ve underpaid tax, you might have to complete a tax return. If this is the case, normal self-assessment time limits apply. To pay an amount up to £3,000 through an adjustment to your tax code for the following year, you should file a return by 31 December following the end of tax year. Otherwise, tax still due for the last tax year must be paid by 31 January following the end of the tax year in which the income arose. If you think you haven’t paid enough tax, contact HMRC. You might be asked to complete a tax return. Be aware if you don’t do this, you’ll usually have to pay penalties and interest when the underpayment does come to light.
What’s the difference between gross and net pay?
Gross pay is the income you get before any taxes and deductions have been taken out. Your annual gross pay is what’s often referred to as your annual salary. Net pay is what’s left after deductions like Income tax and National Insurance have been taken off. It’s what’s often referred to as your take home pay. You can see what your gross pay was and how much has been taken off (if anything) on your payslips.
 
Keeping your payslips

It’s important to keep your payslips in a safe place. Here are our top three reasons why:

  1. Security. Payslips contain a lot of personal information about you and your earnings, including your National Insurance number. Keep them safe to help avoid them being used for identity fraud.
  2. Recordkeeping. It’s a good idea to keep a record of all your earnings and tax payments in case there’s a problem and you need to check old details.
  3. Evidence of earnings. For some financial products, such as loans, you might be asked to prove your earnings by showing your last three payslips.
 
Different pay rates
Does your pay vary, depending on how long or when you work? Then your employer will have to include details of the hours you worked as well as how much you’ve earned on your payslips. if you earn different amounts for different types of work, separate figures for both will have to be included on your payslips. This is so it’s clear if you’re being paid at least the National Minimum Wage – especially if you’re on a zero-hours contract.
 
Payslips problems
If you don’t understand parts of your payslips or think there might be a mistake, speak to someone in the payroll section of your company.

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