Answers · UK 2025/26

What do all the deductions on my UK payslip actually mean?

Standard payslip deductions are Income Tax (PAYE), National Insurance (8% between GBP 12,570 and GBP 50,270, then 2%), and often a workplace pension (auto-enrolment minimum 5% employee). Some payslips also show student loan, salary sacrifice, or court-ordered amounts. Gross pay minus all of these equals your net take-home.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

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A UK payslip must by law show gross pay, the amount and reason for variable deductions, and net pay. The usual deductions are: Income Tax via PAYE, set by your tax code (1257L gives GBP 12,570 tax-free, GBP 1,047.50 a month); National Insurance Class 1, at 8% on monthly earnings between roughly GBP 1,047.50 and GBP 4,189 (the GBP 12,570 and GBP 50,270 annual thresholds divided by 12), then 2% above; and a workplace pension under auto-enrolment, with a minimum 5% employee contribution on qualifying earnings (employer adds at least 3%). Worked example on GBP 36,000 (GBP 3,000/month): Income Tax (GBP 3,000 - GBP 1,047.50) x 20% = GBP 390.50; NI (GBP 3,000 - GBP 1,047.50) x 8% = GBP 156.20; pension at 5% of qualifying earnings roughly GBP 98; net pay about GBP 2,355. Other lines you might see: student loan (9% above your plan threshold, or 6% for postgraduate loans); salary sacrifice (a benefit such as pension or a car taken from gross pay, which also cuts your NI); private medical or season-ticket loans; and statutory court orders such as an attachment of earnings, deducted from net pay. Always check the year-to-date totals and your tax code are correct - errors there are the commonest cause of paying the wrong tax. Reconcile the figures with the Take-Home Pay calculator and read what a payslip must contain at gov.uk/payslips.