An employee has the right to know how much he will be paid and how often. They also have the right to receive an individual and detailed payment statement from their employer, either at the time of payment or shortly before.
When and how the employee should be paid
When you start working, the employer should highlight:
- the day or date you will be paid, for example, every Friday or the last working day of the month;
- how you will be paid, for example, in cash, by check or directly to your bank.
The employee must receive a document indicating how much he/she will be paid and at what intervals, within two months of starting work. This is normally contained in your employment contract.
The employee is not entitled to receive a payment receipt if he/she is:
- not an employee e.g. contractors, freelancers or ‘workers’;
- a member of the police department;
- a merchant seaman, captain or crew member who works in the shared fishery and pays only a share of the profits or gross income of a fishing vessel.
What should the payslip contain?
Each payslip must contain the following information:
- amount of the salary before any deduction (gross salary);
- the individual amount of fixed deductions (such as union dues) or the total amount of these deductions if the employee is provided with a ‘statement of fixed deductions’ as detailed below;
- individual amount of variable deductions (e.g. taxes);
- net amount of the salary (this is the total after deductions);
- amount and partial payment method of salary (as separate figures for cash payment and the balance credited to a bank account).
The employer may include additional information on the payslip that is not required to provide, such as:
- National insurance number;
- tax codes;
- rate of pay (annual or hourly);
- additional payments such as overtime, tips or bonuses, which can be shown separately.
Persona Finance can assist you with payroll and payslips. Contact for consultation. Send request at personafinance.co.uk or email firstname.lastname@example.org