How to Read a UK Payslip: What Each Section Means

Payslips in the UK contain a mix of personal, company, and pay-related details. Understanding what each section means helps both employees and employers ensure accuracy and compliance with HMRC rules.

This guide explains the key information typically shown on a UK payslip, broken down into clear sections.

Employee Information

• Employee No. → A unique reference number assigned by the employer to identify the employee in payroll.

• Employee Name → The full legal name of the employee.

• NI Number → The employee’s National Insurance number, used by HMRC to track contributions and entitlements.

• NI Category → The National Insurance contribution category letter (e.g. A, B, C), which determines the NI rate applied.

Employer / Payroll Process Details

• Company Name → The legal name of the employer issuing the payslip.

• Process Date → The date on which the payroll is processed.

• Tax Period → The payroll tax period number (1–12 for monthly payroll, 1–52 for weekly).

• Dept → Department code, if used by the employer to categorise employees.

• Tax Code → The HMRC-issued code (e.g. 1257L) that sets the employee’s tax-free allowance and how income tax is calculated.

• Payment Method → How the employee is paid (e.g. Direct BACS, cheque, cash).

• Address → The employee’s registered address with the employer.

Payments

Payslips usually include a breakdown of different earnings:

• Payment types → Examples include basic pay, overtime, commission, or bonuses.

• Units → The number of units worked or earned (e.g. hours, days, or items).

• Rate → The rate applied per unit (e.g. £15 per hour).

• Amount → The total value for each payment type.

• Total Gross → The sum of all earnings before any deductions (gross pay).

Deductions

Common deductions shown on a payslip include:

• Deduction types → Such as income tax, National Insurance (NI), pension contributions, or student loan repayments.

• Amount → The value of each deduction.

• Total Deductions → The sum of all deductions taken from gross pay.

This Period

These figures relate to the specific pay period:

• Total gross pay → Gross pay before deductions.

• Gross for tax → Taxable pay for this period (gross pay minus any non-taxable items).

• Earnings for NI → Pay subject to National Insurance contributions.

• Payment period → The period of work covered (weekly, monthly, etc.).

• Pension contributions → Employee contributions to a workplace pension.

Year to Date (YTD)

Payslips often include cumulative totals from the start of the tax year (6 April):

• Total gross pay YTD → Gross pay earned so far in the tax year.

• Gross for tax YTD → Total taxable pay to date.

• Tax paid YTD → Income tax deducted since the start of the tax year.

• Earnings for NI YTD → Total pay subject to NI contributions so far.

• National Insurance YTD → NI contributions deducted to date.

Net Pay

• Net Pay → The take-home amount after all deductions (gross pay minus deductions).

👉 For a full list of payroll terms explained in plain language, check our Payslip Glossary – UK Payroll Terms Explained.