Term

Payslip

A written statement of the month’s pay: gross pay, supplements, compensation, contributions, tax advance, deductions and net amount. The employer must issue it with every payment, electronically if agreed.

Updated

What it means

A payslip is the written document an employer gives an employee each time wages are calculated. It shows the individual pay components, supplements, compensation, gross pay, the employee’s contributions, tax withheld, any child tax credit, deductions from pay and the resulting net pay.

The duty to issue a payslip comes from the Labour Code. Employees have the right to know how their pay was calculated and to check that it matches the agreed terms and the time worked. The payslip data also feed into the payroll record.

A payslip may be electronic, for example in an employee portal or by email, if the employee agrees and personal data are protected. It is usually issued on the payday or shortly afterwards.

How it works in practice

We generate payslips directly from the payroll system and deliver them to clients in the way they choose: printed for handing out, as a password-protected PDF or through a portal. With electronic delivery we make sure only the employee concerned can see the payslip.

We use clear names for pay components on the payslip, not just internal codes. When an employee asks about the calculation, a clear payslip saves time for both the payroll clerk and HR. When pay, supplements or deductions change, we add a short explanation.

In a labour inspection or a dispute with an employee, payslips are among the evidence that pay was calculated correctly. We archive them together with the payroll records for the statutory period.

What to watch out for

Leaving a component off the payslip, such as a supplement or a deduction, can lead to complaints and to a fine in an inspection. An employee who thinks something was not paid will turn to the inspectorate, and an unclear payslip makes things worse.

Sending payslips to unsecured email addresses or shared folders breaches data protection. Payroll data are sensitive information, and a leak can also damage the company’s reputation.

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