How to read a UK payslip, line by line
6 minute read · 2026-10-08
A payslip shows what you earned before anything was taken off (gross pay), each thing taken off and why, and what reached your bank (net pay). Every employee and worker in the UK has a legal right to one, on or before payday, on paper or electronically. If your pay varies with the hours you work, the payslip must also show the number of hours you are being paid for.
What must be on it by law
Under section 8 of the Employment Rights Act 1996 an itemised pay statement must show:
- your gross pay
- the amount of each deduction that varies (tax, NI, pension, student loan) and what it is for
- fixed deductions, either itemised or as a total backed by a separate statement
- your net pay, and how it is split if it is paid in more than one way
- the hours you are paid for, where pay varies by time worked
Since 6 April 2019 this right covers workers (including most agency and casual workers), not only employees. Northern Ireland has its own equivalent law.
The top of the payslip
- Pay date and period. "Week 27" or "Month 6" tells you how far into the tax year (which starts on 6 April) this payment falls.
- Tax code. Usually 1257L in 2026 to 2027. A code with W1, M1 or X after it is an emergency code. An S at the front means Scottish rates, C means Welsh. Our guide to tax codes explains the rest.
- National Insurance number and NI category letter. Most people are category A. A different letter can be correct (for example M for under 21s, where the employer pays no employer NI on most earnings) but if it looks odd, ask.
Payments
- Basic pay: hours times rate, or a salary divided by 12 or 52. Check the hours against your own record.
- Overtime and premiums: often shown as separate lines, such as "OT x1.5" or "nights premium".
- Holiday pay: either paid when you take leave, or, for irregular hours and part year workers, possibly "rolled up" at 12.07% of pay, which must be shown as a separate line. See our holiday pay guide.
- SSP: Statutory Sick Pay, if you were off ill. Explained in SSP in 2026.
- Gross pay: the total of all of the above.
Deductions
- PAYE tax: worked out from your tax code and how much you have earned so far this tax year.
- National Insurance: 8% of earnings between £242 and £967 a week in 2026 to 2027 (£1,048 to £4,189 a month), and 2% above that.
- Pension: your workplace pension contribution, usually at least 5% of "qualifying earnings" for auto enrolled staff. See pension auto enrolment on low pay.
- Student loan: shown with the plan type, for example "SL Plan 2". See student loan deductions.
- Other deductions: anything else (overpayment recovery, uniform, union subs, salary sacrifice) must be allowed by your contract or agreed by you in writing in advance.
Year to date
The "YTD" or "to date" box shows your total pay and tax since 6 April. It is the number to check against your P60 at the end of the year, and the one HMRC uses. If the tax to date looks far too high or low, your tax code is the first suspect.
Employer costs
Some payslips also show employer NI and employer pension. Neither is taken from your pay: they are costs the employer pays on top. Employer pension contributions are worth checking because they are your money.
Five checks for every payday
- Hours paid match hours worked, including any overtime and night shifts.
- Your hourly rate is at least the legal minimum for your age (£12.71 at 21 and over).
- The tax code is not an emergency code for more than a month or two.
- Holiday you took, or rolled up holiday pay, is shown.
- Every deduction is one you recognise and agreed to.
What to do next
If a line is wrong, ask payroll in writing first and keep a copy. Most errors are corrected on the next payslip. If they are not, follow how to check you were paid correctly and complain. For agency work, also read your pay paperwork and what the words mean.
This is general information, not legal advice. For your own situation, ACAS (0300 123 1100) is free.
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