How to Read Your Payslip
Last updated: 26 July 2026
Your payslip shows your gross pay, tax and National Insurance deductions, and net (take-home) pay for each pay period. Understanding each line helps you spot errors, claim overpaid tax, and plan your finances. UK employers are legally required to provide a payslip on or before every pay day.
What Every Line on Your Payslip Means
Payslips vary by employer but must show certain items by law. Here is what each section means:
| Payslip Line | What It Means |
|---|---|
| Gross Pay | Your full salary before any deductions. If you are salaried, this is your annual salary ÷ 12 (or ÷ 52 for weekly). |
| Income Tax | Deducted under PAYE. Calculated on your taxable income (gross minus Personal Allowance). Your tax code determines how much allowance you receive. |
| National Insurance | Employee Class 1 NI. In 2026/27: 8% on earnings between £12,570 and £50,270, then 2% above. |
| Pension | Auto-enrolment contribution (minimum 5% employee, 3% employer on qualifying earnings). May appear as salary sacrifice or relief at source. |
| Student Loan | Collected via payroll if you are over the repayment threshold for your plan. Plan 2: 9% above £27,295. |
| Net Pay | What actually reaches your bank account. Gross Pay minus all deductions. |
How to Check Your Payslip Is Correct
The most common payslip errors are the wrong tax code, incorrect gross pay, or missing pension contributions. Here is how to verify each:
- Check your tax code — it should usually be 1257L for a standard employee. If it shows BR, D0, or has a W1/M1 suffix, you may be on emergency tax.
- Verify gross pay — divide your annual salary by 12 (or 52 for weekly). If the number does not match, contact your payroll department.
- Check NI deductions — multiply the amount between £12,570 and your gross by 8%. If your gross exceeds £50,270, add 2% on the remainder.
- Confirm pension — if enrolled, at least 8% of qualifying earnings should be going in (5% yours, 3% employer’s minimum).
What to Do If Your Payslip Is Wrong
For tax code errors, contact HMRC directly on 0300 200 3300 or update your details through your Personal Tax Account. For gross pay or pension errors, speak to your HR or payroll team first. If you have overpaid tax, HMRC will usually refund it automatically at year end or you can claim earlier via Self Assessment.
Calculate your expected take-home pay and compare it to your payslip:
See take-home pay for your salary: