Understanding
your pay slip

If you’re employed, then you are entitled to an individual payslip. Whether you are paid weekly, fortnightly or monthly, your payslip is a summary of your earnings and any deductions.

Your payslip may contain a lot of information and so our guide explains everything you need to know about understanding your pay slip.

Income Tax Rates for 2025/26

Understanding the tax bands is crucial for managing your take-home pay. For the tax year 2025/26 in the UK, the rates are as follows:

• Personal Allowance: The first £12,570 of income is tax-free (reduced by £1 for every £2 earned above £100,000).
• Basic Rate: 20% tax on earnings between £12,570 and £50,270.
• Higher Rate: 40% tax on earnings between £50,270 and £125,140.
• Additional Rate: 45% tax on earnings above £125,140.
  Your payslip explained

Your payslip explained

1. Your Basic pay

This is your full pay (sometimes called gross pay) before any deductions (such as Income Tax or National Insurance) have been made.

2. The tax you have paid

Your payslip should show the amount of Income Tax that has been deducted. The amount of tax that you pay depends on your salary and your Personal Allowance.

3. The National Insurance contributions that you have paid

Your National Insurance (NI) contributions are deducted from your gross pay. NI goes towards providing some benefits, for example a state pension.

4. Other fixed deductions

Your payslip should show any other fixed deductions that are made from your income. These are deductions that do not change in value between paydays, for example union membership fees. Your employer does not have to specify what these deductions are every month as long as you receive a statement explaining them once a year.

5. Your net pay

Your payslip should tell you the amount of take-home pay you receive after all deductions have been made.