Do you glance at your payslip and file it away without truly understanding what it contains? If so, you’re not alone.
Payslip checking is a crucial skill that many workers overlook, despite the fact that payroll errors may affect thousands of employees each year.
When you take the time to review your payslip properly, you can verify that your gross pay is accurate, ensure your tax deductions are correct, and confirm that your National Insurance contributions are being calculated appropriately.
Understanding your PAYE (Pay As You Earn) entries could help you spot potential issues before they affect your net pay and financial wellbeing.
This straightforward guide walks you through the essential elements of your payslip, explains common deductions, helps you decode your tax code, and shows you how to address any discrepancies you might find.
Your Right to a Payslip in the UK
Under UK employment law, understanding your rights regarding payslips is fundamental.
The Employment Rights Act 1996 forms the legal foundation governing payslip requirements, ensuring workers can verify their earnings and deductions.
Who Is Entitled to a Payslip?
The legal right to receive a payslip extends beyond traditional employees.
Since April 2019, all workers must receive payslips—not just those classified as employees.
This expanded protection covers:
- Traditional employees with formal employment contracts
- Workers on zero-hour contracts
- Agency workers (who receive payslips from their agency)
- Casual workers
This expansion represents an important step in workplace transparency, ensuring everyone who provides services personally for payment can verify their earnings and deductions.
When and How Payslips Must Be Provided
Employers must provide payslips on or before each payday, regardless of your pay schedule.
This could mean weekly payslips for weekly-paid workers, bi-weekly payslips for fortnightly payment schedules, or monthly payslips for those paid monthly.
Crucially, payslips must be issued automatically—you should not need to request them. If a payday falls on a bank holiday, the payslip should still be provided on or before that day, never after.
Regarding format, employers may choose between different delivery methods:
- printed paper copies (typically sealed for confidentiality)
- electronic versions sent via email,
- or access through secure password-protected online portals. If you cannot access online payslips, your employer should provide alternative formats, such as paper copies.
Exceptions to the Rule
Although the right to a payslip is widely applicable, certain categories of workers are specifically excluded from this entitlement under UK law:
- Genuinely self-employed contractors and freelancers
- Police service personnel
- Merchant seamen and women
- Masters or crew members working in share fishing
- Members of the armed forces
These exceptions typically reflect different pay structures or separate regulatory frameworks for these professions.
What Your Payslip Must Include
Every UK payslip serves as a critical document providing clarity about your earnings and deductions. The law outlines specific elements that must appear on your payslip.
Gross Pay and Net Pay
At the core of your payslip are two essential figures. Gross pay represents your entire salary before any deductions are made.
It includes your basic salary plus any overtime, bonuses, and additional earnings owed to you. This figure typically appears as the highest number on your salary statement.
In contrast, net pay (often labelled as “take-home pay”) shows the actual amount deposited into your bank account after all deductions.
This figure typically appears in a larger font or bold text to make it easily identifiable.
Understanding the distinction between these amounts helps you verify that proper calculations have been applied to your earnings.
Variable and Fixed Deductions
Your payslip must clearly display two types of deductions. Variable deductions change from one pay period to another and must be individually itemised.
These include income tax, National Insurance contributions, student loan repayments, and pension contributions.
Fixed deductions remain constant across pay periods. While these must be accounted for, employers may choose to show them either as individual items on each payslip or as a combined total.
Typically with a separate “standing statement of fixed deductions” provided at least once every 12 months.
Fixed deductions typically include items like trade union subscriptions.
Hours Worked
Since April 2019, employers must show the number of hours worked on payslips, but only in cases where your pay varies based on time worked.
This information can be presented either as a single aggregate figure of total hours or as separate figures for different types of work or different pay rates.
This requirement particularly benefits those on variable contracts, helping them verify they have been properly paid for all hours worked.
If you receive a fixed salary regardless of hours worked, this element is not required.
Optional Details
While not legally mandated, most payslips include additional useful information such as your tax code (used by employers to calculate income tax), your National Insurance number, pay rate (annual or hourly), and any extra payments like overtime or bonuses.
Your tax code particularly merits attention as it determines how much tax-free income you are entitled to.
You can verify its accuracy by checking it against HMRC’s online records or their app.
Understanding Deductions and Contributions
Your payslip analysis cannot be complete without examining the various deductions that affect your take-home pay.
Each deduction serves a specific purpose within the UK tax system.
Income Tax and National Insurance
The Pay As You Earn (PAYE) system enables your employer to collect income tax and National Insurance contributions directly from your wages before payment.
Your tax code determines how much of your annual income should remain tax-free based on your Personal Allowance.
Most people pay income tax through PAYE, which automatically deducts the correct amount according to your earnings.
This system ensures you contribute throughout the year rather than facing a lump-sum payment.
Your National Insurance contributions likewise fund government expenditure, including the NHS and state pensions.
For the 2025/26 tax year, the Personal Allowance stands at £12,570, with the basic rate of 20% tax applied to earnings between this amount and £50,270.
Pension Contributions
Workplace pension contributions typically appear on your payslip as “EE pension” for your contributions and possibly “ER pension” for your employer’s portion.
There are two primary pension contribution arrangements:
Net pay arrangement: Your employer takes pension contributions from your gross salary before calculating tax. You receive full tax relief immediately regardless of your tax rate.
Relief at source: Your employer takes pension contributions after deducting tax and National Insurance. Your pension provider then adds basic-rate tax relief to your pension pot.
For auto-enrolled schemes, the minimum total contribution is typically 8% of qualifying earnings, with employers contributing at least 3%.
Student Loan Repayments
Student loan repayments appear on your payslip when your income exceeds specific thresholds.
From April 2025, these thresholds (which can be changed) are:
- Plan 1: £26,065 annually (£2,172.08 monthly)
- Plan 2: £28,470 annually (£2,372.50 monthly)
- Plan 4: £32,745 annually (£2,728.75 monthly)
- Postgraduate loans: £21,000 annually (£1,750 monthly)
For Plans 1, 2, and 4, you repay 9% of income above the threshold, whereas postgraduate loan repayments are calculated at 6%.
Court Orders and Child Maintenance
Court-ordered deductions may include attachment of earnings orders for debt repayment or Child Maintenance Service (CMS) deduction from earnings orders.
These deductions are legally required and cannot be stopped without official notification.
The priority of deductions matters, especially when multiple orders exist.
Generally, priority orders (such as council tax attachments) take precedence over student loan and pension deductions.
How to Read and Check Your Tax Code
Your tax code deserves special attention when checking your payslip as it directly affects your take-home pay.
This alphanumeric code determines how much tax you pay each month through the PAYE system.
What a Tax Code Means For Employees
Tax codes consist of numbers and letters that tell your employer how much tax-free income you are entitled to and your specific tax situation.
For the 2025/26 tax year, the most common tax code is 1257L, which typically applies to most people with one job or pension.
This code effectively instructs your employer about your Personal Allowance and how much tax to deduct from your wages.
The numbers in your tax code represent your tax-free Personal Allowance divided by 10.
For instance, 1257 indicates a Personal Allowance of £12,570. This amount may be adjusted if you receive company benefits or have other untaxed income.
Common Tax Code Letters:
Each letter in your tax code indicates specific circumstances:
L: You receive the standard tax-free Personal Allowance
M: You have received a transfer of 10% of your partner’s Personal Allowance through Marriage Allowance
N: You have transferred 10% of your Personal Allowance to your partner
T: Your tax code includes other calculations affecting your Personal Allowance
K: You have income exceeding your allowance that requires additional tax collection
BR, D0, D1: All your income from a particular job is taxed at basic, higher, or additional rate respectively
C and S: Your income is taxed using Welsh or Scottish rates
Emergency Tax Codes
Emergency tax codes end with W1 (weekly pay), M1 (monthly pay), or X.
These are temporary measures used when HMRC lacks sufficient information about your income, typically after starting a new job, working for an employer after being self-employed, or beginning to receive company benefits or State Pension.
To resolve an emergency tax code, provide your employer with your P45 from your previous job or complete a “starter checklist” form if you do not have a P45.
How to Fix a Wrong Tax Code
If you suspect your tax code is incorrect:
- Check your tax code via HMRC’s online service, app, or your payslip
- Contact HMRC directly at 0300 200 3300 or through your personal tax account
- Explain why you believe your tax code is wrong
HMRC should subsequently contact both you and your employer if a change is needed. Your next payslip should display your updated tax code alongside any pay adjustments.
Common Payslip Issues and How to Fix Them
Even with thorough payslip checking, issues occasionally arise that require prompt attention and specific remedial actions.
Missing or Incorrect Payslip
Employers should ideally provide payslips before payday to allow time for correcting any errors.
If your payslip does not arrive when expected, contact your manager, payroll team, or employer as soon as possible to request it.
This informal approach often resolves the issue quickly. If after informal discussions you still do not receive your payslip, you may be able to make a claim to an employment tribunal.
Discrepancies in Pay or Deductions
Upon noticing errors in your gross pay or tax deductions, immediately check your payslip against your employment contract, timesheet, or roster. Common discrepancies include:
- Incorrect hours recorded
- Missing overtime payments
- Wrong tax code application
- Excessive National Insurance contributions
For underpayments, your employer should pay the difference promptly.
How to Raise a Grievance
If informal resolution attempts fail, you may raise a formal grievance by:
- Consulting your organisation’s grievance policy for specific procedures
- Putting your grievance in writing, including evidence such as payslips
- Clearly stating what resolution you seek
- Attending a grievance meeting with your employer
You have the right to bring a colleague or trade union representative to this meeting.
When to Contact HMRC
Contact HMRC directly under these circumstances:
- Your tax code appears incorrect
- Your employer has not resolved PAYE issues after 12 days into the next tax month
- You have been placed on an emergency tax code for too long
- You are entitled to statutory payments but are not receiving them
For tax code issues, call HMRC at 0300 200 3300 with your tax reference and National Insurance number readily available.
Key Takeaways For Payslip Management
Understanding your UK payslip represents a vital financial skill. Regular payslip checking helps ensure you receive accurate compensation whilst maintaining proper tax and contribution records.
Remember that receiving a detailed payslip is your legal right as a worker in the UK.
This document provides essential information about your earnings, deductions, and contributions—all critical elements that affect your financial wellbeing.
Take time after each payday to review your payslip carefully.
This simple habit could prevent financial headaches, ensure compliance with tax regulations, and help you plan your finances more effectively.
Payslip Frequently Asked Questions
Q: Am I legally entitled to a payslip?
A: Yes, if you are a worker in the UK (employee, agency worker, or casual worker), you are legally entitled to a payslip on or before each payday. Self-employed contractors and certain other categories are excluded.
Q: What is the most common tax code for 2025/26?
A: The most common tax code is 1257L, which represents the standard Personal Allowance of £12,570. The numbers indicate your tax-free allowance divided by 10.
Q: What should I do if I notice an error on my payslip?
A: First, contact your employer’s payroll team or HR department to report the error. Compare your payslip with your employment contract and timesheets. If the issue remains unresolved, you may need to raise a formal grievance or contact HMRC for tax-related errors.
Q: What does an emergency tax code mean?
A: Emergency tax codes (ending in W1, M1, or X) are temporary codes used when HMRC does not have enough information about your income. To resolve this, provide your employer with your P45 from your previous job or complete a starter checklist.
Q: How do I check if my National Insurance contributions are correct?
A: You can check your National Insurance record through your Personal Tax Account on GOV.UK. Compare the contributions shown there with what appears on your payslips to identify any discrepancies.
Useful Payslip Resources:
- HMRC Income Tax enquiries: 0300 200 3300
- GOV.UK Personal Tax Account: www.gov.uk/personal-tax-account
- Check your State Pension: www.gov.uk/check-state-pension
- ACAS (Advisory, Conciliation and Arbitration Service): www.acas.org.uk
- Citizens Advice: www.citizensadvice.org.uk
