Payslips are packed with abbreviations and jargon — NI, PAYE, EE, ER, BR… it can look like another language! This quick glossary breaks down the most common payroll terms so you can finally read your payslip with confidence.
💼 Why Payslip Terminology Matters
Understanding the language of payroll helps you:
- Check that your pay and deductions are correct.
- Spot mistakes early.
- Know exactly what to tell HMRC or your lender if you’re asked for income details.
📖 Common Payslip Terms and What They Mean
| Term |
Meaning |
| PAYE |
Pay As You Earn – the system your employer uses to collect Income Tax and National Insurance on behalf of HMRC. |
| NI |
National Insurance – contributions that fund benefits like the State Pension and maternity pay. |
| EE / ER |
EE = Employee, ER = Employer – used to label who pays each contribution or benefit. |
| Gross Pay |
Your total pay before deductions such as tax, NI, or pension. |
| Net Pay |
Your take-home pay after all deductions have been applied. |
| Tax Code |
A code from HMRC that tells your employer how much tax-free income you can earn before deductions. |
| Pension (EE/ER) |
Your (EE) and your employer’s (ER) contributions to a workplace pension scheme. |
| SL / SLR |
Student Loan or Student Loan Repayment – deductions made once you earn above the threshold for your loan plan. |
| YTD |
Year-to-Date – the total pay or deductions accumulated since the start of the tax year. |
🧾 How to Use This Glossary
Keep this guide handy when reviewing your payslip. If any unfamiliar code appears, cross-check it here — and if something still looks off, ask your payroll department for clarification before payday.
🔗 Internal Links
