Understanding your pay and reading a payslip?

This article if focused on explaining pay for UK employees and the process of reading pay slips. 

As an employee you should be told by your employer how much you will be paid, the date of your payment and the medium of payment i.e. by cheque or bank transfer.

As an employee, unlike contractors or freelancers, you have the right to receiving a payslip. This can come in a paper or online form.

 A payslip will show the following:

·      Your personal information

·      Your payroll number

·      Date

·      Tax Period

·      Your Tax Code

·      Your national insurance number

·      Payments, wages, bonuses, commissions

·      Expenses

·      Deductions

·      Pensions

·      Student Loan

·      Court orders and child maintenance

·      Sick Pay

·      Maternity, paternity and adoption pay

·      Workplace benefits

·      Other deductions

 

Please note that the amount discussed in payments, wages, bonuses, commission, expenses and deductions are likely to change with each tax year and month.

 

Below is an example of how your pay slip may be laid out

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How to work out your pay

 It is important to understand how your pay is worked out to understand the amounts that you should receive for:

·      Redundancy Pay

·      Gardening Leave

·      Pay during your notice period

·      Holiday Pay

·      Guarantee pay for work

·      Compensation

·      Commission amounts

 

One-way of working out your pay is using the 12-week period. This is the method of calculating an average figure over a 12-week period. The particular 12 weeks will vary depending on what your calculating pay for.

 

For support on understanding your pay go to Acas

Contact us for payroll and tax services