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MDP - Employee - Payslip Breakdown

Understand how to read and interpret your payslip, including pay, tax, and deductions

Sharabin Mathi avatar
Written by Sharabin Mathi
Updated over 2 weeks ago

Understanding Your Payslip

Your payslip is divided into several clearly defined sections to help you understand how your pay has been calculated. Each section provides specific information about your personal details, payments, deductions, and taxes for the current period and year-to-date.

Your payslip includes the following sections:

  • Header

  • Your Information Summary

  • Payments

  • Deductions

  • In Period

  • Year to Date (YTD)

  • Payslip Summary

Header

The Header section displays your employer’s details, including:

  • Client Name

  • Client Logo

Your information summary

This section contains your personal and employment information as recorded by your employer. You will typically see:

  • Employee Name – Your full name

  • Employee Number – Your unique employee ID

  • NI Number – Your National Insurance number

  • NI Category – The category used to calculate National Insurance

  • Tax Code – Your current tax code (if your tax code ends with “X”, it means you are on a Week 1 / Month 1 basis)

  • Pay Date – The date your pay is issued

  • PAYE Reference – Your employer’s PAYE reference number

  • Address – Your registered home address

  • Notes – Any additional payslip notes added by payroll

Payments

This section outlines the details of your pay for the period. It includes:

  • Payment Name – e.g., Basic Pay, Overtime, Bonuses

  • Units – Hours or quantities worked (where applicable)

  • Rate – The pay rate applied

  • Total – The total amount for each payment item

Any notes associated with specific payment items will appear directly under the item name.

If you have received any pension refunds, these will also appear in this section.

At the bottom of the Payments section, you will see the total gross payment amount for the period.

Deductions

This section lists all deductions taken from your pay, such as:

  • PAYE (Income Tax)

  • National Insurance (NI)

  • Student Loan repayments

  • Pension contributions

  • Court Orders

  • Any other deduction items

Any notes associated with specific deduction items will appear directly under the item name.

The bottom of this section shows the total deductions amount.

In Period

The In Period section shows the payroll values specific to the current tax period, including:

  • Taxable Pay

  • NIable Pay

  • Pensionable Pay

  • Employer’s Pension Contribution

This information helps you understand what earnings and contributions apply to this pay period alone.

Year to Date (YTD)

The Year to Date section displays accumulated totals for the current tax year, including:

  • Total Taxable Pay

  • Total PAYE (Income Tax)

  • Total NIable Pay

  • Total Employee NI Contributions

  • Total Pensionable Pay

  • Total Employee Pension Contributions

These totals include the values from the current pay period as well as all previous periods in the same tax year.

Payslip Summary

This final section provides a clear summary of:

  • Net Pay – The amount you will receive

  • Pay Frequency – e.g., weekly, monthly

  • Tax Period – The tax period your payslip relates to

Need Further Assistance?

If you need help understanding any specific part of your payslip, please contact your payroll team or support representative.

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