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How to Read Your Payslip: Every Line Explained

A payslip looks confusing, but it follows a simple pattern. Here is what each line means and what to check.

Updated 8 October 2026 · figures for 2026/27

The key lines

LineWhat it means
Gross payWhat you earn before anything is taken off, including overtime and bonuses.
Taxable payThe part of your pay that is subject to Income Tax. It can be lower than gross pay if you pay into a pension before tax.
Tax codeThe code HMRC gave your employer, such as 1257L. See our tax code guide.
Income TaxTax deducted this pay period.
National InsuranceYour employee NI contributions, with a letter (usually A) that shows your category.
PensionYour workplace pension contributions.
Student loanRepayments if you earn above the threshold for your plan.
Net payWhat is paid into your bank account, also called take-home pay.
Year to dateRunning totals for the tax year, which HMRC uses to work out tax on a cumulative basis.

What to check each month

  • Your tax code is what you expect, usually 1257L.
  • Your hours and rate match what you worked, including overtime.
  • Your pension contributions are the percentage you agreed.
  • Your NI category letter is correct.
  • No unexpected deductions have appeared.

Why your tax can change month to month

PAYE works out tax cumulatively across the year, so a bonus or extra hours in one month can push up the tax that month. It evens out over the year. Use our take-home pay calculator to check what your take-home pay should be, and speak to your payroll team if something looks wrong.

This guide is general information, not financial or legal advice. Rates checked 8 October 2026 against GOV.UK.

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