Understanding Your Payslip

Not quite sure what all the amounts on your payslip mean? We’ve got a handy guide to help you make sure you’re being paid correctly – and to make sure you understand your payslip.

Check out our TikTok below on decoding your payslip.

@young.scot Need help decoding your payslip? We’ve got you. Head to young.scot/MoneyAndMe for more information. #MoneyAndMe #Payslip #Tax #NetPay #PAYE #Wages #Work #Scottish #YoungScot ♬ Lofi nostalgic old music box(833007) – NARU

If it’s your first job, or you’ve moved on from somewhere else, some of the most common issues that people have when they first enter the workforce or receive their first pay from a new employer concern taxes. Here are some useful hints to make the transition easier:

  • Make sure you’re paying the right kind of tax – there are a few different tax codes so it’s important to make sure you’re on the right rate. You can also use this handy, free calculator to check.
  • If you’re still unsure, or just want to double check, talk to someone in your payroll department at your workplace – this could be your HR or Finance department. It’s always better to check. If you don’t want to talk to someone at your employer, you could talk to Citizens Advice.
  • It is important to remember when you leave a job and start a new job you must give your new employer a P45. You should do this as soon as possible to avoid paying too much or too little tax. Again, if something seems off, talk to your payroll department ASAP.
  • Sometimes you have the option to opt-out of your employer pension, but – even though it seems far away – it is always a good idea to think about saving for your future. Think carefully before you do choose to opt-out.

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