Got Your First UK Payslip? Here's What Every Line Means

Whether it's your very first job or your first payslip in the UK after moving from abroad, the layout can be confusing. Here's a line-by-line guide to every element you'll find on a standard UK payslip.

The Top Section: Your Identity and Period

• Employee Name & NI Number: Your name and National Insurance number (in the format XX999999X). This identifies you for tax purposes.
• Tax Code: The code HMRC has assigned (see our Tax Code Guide). Determines how much of your pay is tax-free.
• Pay Period: The dates covered by this payslip (e.g., "01/06/2026 – 30/06/2026").
• Payment Date: When the money actually hits your bank.
• Employer Reference: Your employer's PAYE reference. Useful if you ever contact HMRC about your employer's payroll.

Earnings Section

• Basic Pay / Basic Salary: Your contracted salary for this period. The foundation of everything else.
• Overtime: Any additional hours worked at your regular or premium rate.
• Shift Premium / Night Allowance: Additional pay for unsocial hours — can be taxable or non-taxable depending on the arrangement.
• Bonus / Commission: Additional performance-based payments. Always fully taxable.
• Gross Pay: The total of all the above — your pay before any deductions.

Deductions Section

• Income Tax / PAYE: The income tax calculated under Pay As You Earn based on your tax code and earnings to date.
• National Insurance (NI): Employee NI contribution — currently 8% on earnings between £12,570–£50,270 per year.
• Pension: Your employee pension contribution, often as a percentage of qualifying earnings.
• Student Loan: Collected via PAYE at 9% (Plan 2) or 6% (Plan 5) on earnings above the relevant threshold.

Net Pay

Your Net Pay (sometimes called "Take-Home Pay") is Gross Pay minus all Deductions. This is the amount transferred to your bank account.

Year-to-Date (YTD) Columns

Most payslips also show cumulative totals since the start of the tax year (6 April). This is how HMRC checks whether you've paid the right total tax across the year.

Frequently Asked Questions

Why is my first payslip different to all the others?

Your first payslip might be higher or lower than expected if you started mid-month (your pay is pro-rated), if you were put on an emergency tax code, or if your pension hasn't started yet (there's often a waiting period).

What's the difference between "Gross Pay" and "Taxable Pay"?

If you make salary sacrifice contributions (e.g., for pension, cycle to work, or childcare), these come out before your taxable pay is calculated. Taxable pay = Gross Pay minus any salary sacrifice amounts. Tax is charged on Taxable Pay, not Gross Pay.

Use our Payslip Checker to verify every number on your payslip.