Definition
A document provided by the employer showing the breakdown of an employee's pay, including gross pay, deductions, and net pay. Since April 2019, all workers including casual and zero-hours contract workers are entitled to a payslip.
UK Context
The Employment Rights Act 1996 requires employers to provide an itemised pay statement before or at the time of payment. Since April 2019, payslips must also show hours worked where pay varies by time worked. Payslips can be provided in paper or electronic form. Failure to provide a payslip can result in a tribunal awarding compensation.
Best Practices
- Ensure payslips clearly show all components of pay and all deductions with explanations
- For workers whose pay varies by hours, include the number of hours worked on the payslip
- Provide payslips before or at the time of payment and keep payroll records for at least three years
Frequently Asked Questions
What must a payslip include?
A payslip must show gross pay, variable and fixed deductions with explanations (or a standing statement of fixed deductions), net pay, and where pay varies by time worked, the number of hours worked. It may be provided in paper or electronic form.
Who is entitled to a payslip?
Since April 2019, all workers are entitled to a payslip, not just employees. This includes casual workers, zero-hours contract workers, and agency workers. The only exception is members of the police service and armed forces.