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College Life

Understand your Wage Slip

Understanding your wage / salary slip

A standard wage slip will give the employer name and department in which you work. Also included is your National Insurance Number which everyone receives when they become 16. Deductions are listed and totalled separately and is taken off your Gross pay. The resulting amount is the money your receive either in cash or paid directly into your bank account.

Your tax code tells you how much you can earn before paying tax e.g. a Tax Code of 489L allows you to earn £4895 per year.
Gross Pay means pay before deductions for Tax, National Insurance etc.
Net Pay is also known as ‘Take Home’ pay
The National Minimum wage applies to most people over the age of 16
National Insurance Contributions pay for the NHS, entitlement to State Pension & benefits
PAYE stands for Pay as you Earn
You receive a P45 when you leave a job
A P60 tells you how much Tax you have paid this year