What's on your payslip?

Number crunching made easy.

Your payslip serves a number of functions. Crucially, it confirms that you've been paid, usually on a weekly or a monthly basis. Some people receive their wages directly into a bank or building society account; others may get their payslip along with a pay packet (containing cash). It also tells you what's been skimmed from the final sum: either compulsory or voluntary deductions.

Your payslip layout may differ from one employer to the next, but here are the bare essentials:

Employer name

The person, company or organisation you work for.

Employee name

That's you, the one with the name badge on your overalls.

Pay reference

This number is unique to you, with one for each staff member.

Payment date

Tells you when the money hit your account.

Gross pay

All the money you've earned in this period, before deductions.

National Insurance Contribution

The amount deducted depends on your income, but it's compulsory. Your NI number may also be included, along with a code that determines whether or not you're contributing to a work pension scheme.

Income tax

This amount is paid to the Inland Revenue, and deducted at source. It's a percentage of your income, and depends on what income bracket you're in.

For the 2008/9 tax year your basic personal allowance (or tax-free amount ) is £5,435, after that you're taxed at the following rates:

£0 - £36,000 at 20%;
Over £36,000 at 40%.

Pension Scheme contributions

There are many different types of pension schemes on offer, all of which allow you to invest a percentage of your income for your retirement. If you've opted in to such a scheme, the amount in question will be deducted at source and shown here.