How to Read Your Payslip — Every Field Explained

Your payslip might look like a wall of numbers and abbreviations, but every figure on it tells you something important about your pay. Understanding it means you can check you’re being paid correctly, spot errors early, and know exactly what to say when a lender or landlord asks for income details.

This guide explains every field you’ll find on a UK payslip — in plain English, updated for 2026/27.

What must legally appear on your payslip?

Under UK law, your employer must provide a payslip on or before the date you’re paid. It must show at minimum:

• Gross pay (your total earnings before deductions)
• Net pay (what you actually receive)
• Any variable deductions individually listed (such as tax and National Insurance)
• Any fixed deductions (such as a salary sacrifice scheme)

Employers who fail to provide a payslip can be taken to an employment tribunal.

The fields on your payslip — explained

1. Employee number / payroll number

Your employer’s internal reference for you. Not used externally but may be requested if you contact HR or payroll.

2. Employee name

Your name as held on the payroll system. Check it matches your official documents — errors here can cause problems with HMRC.

3. Employee address

Your home address. Not always shown on every payslip style. Your NI number also appears here on many payslips.

4. National Insurance number

Your unique NI reference. Check this against your P60 and any HMRC correspondence to make sure it’s correct. If it’s wrong, contact your payroll department immediately.

5. Company name and address

Your employer’s trading name and address. The Employer PAYE Reference (a code like 123/AB456) also appears here — you’ll need this if you contact HMRC about your tax.

6. Pay method

How your pay is transferred — usually BACS bank transfer. Some payslips also show the bank account number (last four digits only) for verification.

7. Tax code

Your tax code tells your employer how much of your income is tax-free. Most people are on 1257L, which gives a tax-free personal allowance of £12,570. A different code means your allowance has been adjusted — check with HMRC if you don’t recognise it.

8. Pay period and period number

How often you’re paid (weekly, fortnightly, four-weekly, or monthly) and which period this payslip covers. The period number counts from the start of the tax year (6 April). So period 1 monthly = April, period 12 = March.

9. Process date / pay date

The date your employer ran the payroll. Note: this is not always the date the money hits your bank account — BACS transfers take up to three working days.

Earnings

10–12. Description of payments

Your gross earnings for the period, broken down by type. The main line will usually show Salary. Additional lines may show:

• Bonus — any performance or contractual bonus
• Commission — sales-based earnings
• Overtime — additional hours worked
• Car allowance — a taxable cash allowance for using your own car

All of these contribute to your gross pay and are subject to tax, NI, and other deductions.

13. Expenses

Business expenses reimbursed by your employer. Expenses are not subject to tax or NI and do not affect your gross pay — but they are included in the final net payment figure.

14–16. Units × Rate = Amount

If you’re paid hourly or by the day, your payslip may show the number of units (hours or days worked), the pay rate, and the resulting total. This is common for part-time, casual, or hourly-paid employees.

17. Notes

Some payslips include a short notes field for additional information — for example, holiday days remaining, or payment reference details.

Deductions

18. Income Tax (PAYE)

The income tax deducted from your pay this period via the PAYE system. This is calculated based on your tax code and cumulative year-to-date earnings. In 2026/27, the basic rate is 20% on earnings above £12,570 up to £50,270.

19. National Insurance (employee)

Your employee NI contribution for the period. In 2026/27, the rate is 8% on earnings between £12,570 and £50,270, and 2% above that. This funds your State Pension and other benefits.

20. Student loan

Repayments are deducted automatically once your earnings exceed your plan’s threshold. The most common is Plan 2 (threshold £29,385, rate 9%). Shown on your payslip as SL or Student Loan.

21. Healthcare / private medical

If your employer offers private medical insurance as a benefit, your contribution may appear here as a deduction.

22. Pension (EE — employee contribution)

Your contribution to your workplace pension. Under auto-enrolment, the minimum is 5% of qualifying earnings. This reduces your net pay but is money going into your pension pot, not lost. Some employers use salary sacrifice which means your pension is taken before tax, reducing your tax and NI bill.

23. Pension (ER — employer contribution)

Your employer’s pension contribution. Under auto-enrolment, the minimum employer contribution is 3%. This does not reduce your pay — it’s an additional payment made by your employer into your pension. It appears on the payslip for information only.

24. Employer National Insurance

Some payslips also show the employer’s NI contribution. Like the employer pension, this does not come off your pay — it’s a cost borne entirely by your employer. In 2026/27 the employer NI rate is 15% on earnings above £5,000.

Summaries

25. Period summary

A summary of your gross pay, total deductions, and net pay for this pay period only.

26. Year-to-date (YTD) summary

The cumulative totals of your gross pay, tax, NI, and pension since the start of the tax year (6 April). Your final payslip of the year should match your P60 — if they don’t, contact your payroll department.

27. Net pay

The amount paid into your bank account. This is your gross pay minus income tax, NI, student loan, pension (employee contribution), and any healthcare deductions. Expenses are added back in as they are not deductions. Employer NI and employer pension are not included here.

Common payslip abbreviations

How to check your payslip is correct

Use the free OS Payroll salary calculator to check your income tax and National Insurance figures. Enter your gross salary and tax code, and compare the results against your payslip. Small differences are normal if your salary changed mid-year or you received a bonus, but significant differences should be queried with your payroll department.

→ Check your figures with the free salary calculator

Frequently asked questions

What is the difference between gross pay and net pay?

Gross pay is your total earnings before any deductions. Net pay is what you receive after income tax, National Insurance, pension, and any other deductions have been taken. Net pay is the figure that appears in your bank account.

Why does my payslip show a different tax amount each month?

PAYE is calculated cumulatively across the tax year. If your earnings vary — because of a bonus, overtime, or a mid-year pay rise — your monthly tax will adjust to keep your total tax-to-date on track. A bigger month will result in a higher tax deduction.

What should I do if I think my payslip is wrong?

Contact your payroll department as soon as possible, ideally before the next pay run. Use the OS Payroll salary calculator to check what your deductions should be. If the error relates to your tax code, you may also need to contact HMRC on 0300 200 3300.

Why is my NI showing as zero?

NI is only charged on earnings above the Primary Threshold (£12,570 per year / £1,048 per month in 2026/27). If your earnings for that period are below this threshold — for example if you work part-time or had unpaid leave — no NI is deducted.

What is the employer NI figure on my payslip?

Some payslips show the employer’s NI contribution for transparency. This is a cost paid by your employer on top of your salary — it does not come off your pay and has no effect on your net pay.

Can I use my payslip as proof of income?

Yes — payslips are widely accepted as proof of income for rental applications, benefit claims, and some mortgage applications. Most lenders prefer P60s for formal mortgage applications, but payslips are accepted in many situations.

This post is for general information only and does not constitute financial or tax advice. For queries about your specific pay or tax position, contact your payroll department or HMRC.