Payslip Calculator UK 2025/26
Decode your pay: see exactly how your gross pay becomes net pay with a full payslip-style breakdown
Last updated: February 2026
Generate Your Payslip Breakdown
Enter your gross pay and payroll details to see a full payslip simulation
Tax Code Decoder
National Insurance Categories Explained
| Category | Who it applies to | Employee NI Rate | Employer NI Rate |
|---|---|---|---|
| A | Standard employees aged 21+ (not apprentice) | 8% / 2% | 15% |
| B | Married women/widows with valid election | 3.85% / 2% | 15% |
| C | Over State Pension age | 0% | 15% |
| H | Apprentice under 25 | 8% / 2% | 0% up to UEL, 15% above |
| J | Deferred NI (has another employment) | 2% all earnings | 15% |
| M | Under 21 | 8% / 2% | 0% up to UEL, 15% above |
| Z | Under 21, deferring NI | 2% all earnings | 0% up to UEL, 15% above |
UEL = Upper Earnings Limit (£50,270/year in 2025/26). Employee NI: 8% between Primary Threshold (£12,570) and UEL; 2% above UEL.
How to Read Your Payslip: Every Line Explained
A payslip can feel like a page of confusing numbers, but each line tells you something important about how your gross pay is transformed into your take-home net pay. Understanding your payslip helps you spot errors, plan your finances, and make informed decisions about pensions and salary sacrifice schemes.
Employer Details and Employee Information
Your payslip must show your employer's name and often their address, your name, your payroll or employee number, your NI number, and your tax code. Always check your tax code is correct - an error here can result in months of overpaid or underpaid tax. The pay period (e.g. Month 6, Week 26) indicates which week or month of the tax year the payment covers. Tax year runs from 6 April to 5 April the following year.
Gross Pay: Your Starting Figure
Gross pay is your total earnings before any deductions. It includes your basic salary, overtime, bonuses, commission, statutory sick pay (SSP), statutory maternity/paternity pay, and any taxable benefits-in-kind settled via payroll (such as a company car benefit). Some payslips show additions and deductions separately so you can see exactly what makes up the gross figure. Tips and gratuities paid by customers directly to you may also be included depending on how your employer processes them.
Income Tax via PAYE
Pay As You Earn (PAYE) is the system HMRC uses to collect income tax directly from your salary before you receive it. Your employer calculates tax using your tax code and the tables or formulae provided by HMRC. Under a cumulative code, your employer takes into account all the pay and tax from earlier in the tax year - so if you had a low-income month or were unemployed for part of the year, you may get a tax refund through your payslip without needing to do anything. Under an emergency W1/M1 code, only the current period's pay and allowance are considered, which often means you overpay tax temporarily.
National Insurance Contributions (NICs)
Employee NI is deducted based on your NI category letter and your earnings in the current period. Unlike income tax, NI is always calculated on a per-period non-cumulative basis - each pay period is independent. For most employees (Category A), you pay 8% on earnings between the Primary Threshold (£1,047.50/month in 2025/26) and the Upper Earnings Limit (£4,189/month), and 2% on earnings above £4,189/month. Your payslip should also show your employer's NI contribution (15% above the Secondary Threshold of £417/month), though this is not a deduction from your pay - it is an additional cost to your employer.
Year-to-Date (YTD) Figures
Many payslips include year-to-date columns showing the cumulative gross pay, tax paid, and NI paid since April 6th. These figures are valuable for checking whether your total tax payments match what HMRC expects. If your YTD tax looks much higher or lower than expected - for example if you changed jobs mid-year - it may indicate you are on the wrong tax code. Keep your payslips: HMRC may ask for them when reconciling your tax account, and they are useful evidence if you need to claim tax back or challenge a tax demand.
Your Legal Rights Regarding Payslips
Under the Employment Rights Act 1996, as amended by the Employment Rights (Miscellaneous Amendments) Regulations 2019, every worker (not just employees) is entitled to a payslip. This right applies from day one of employment with no qualifying period. Your payslip must be given on or before payday, in writing or electronically. Since April 2019, if your pay varies based on hours worked (e.g. you are on an hourly rate or have variable overtime), the number of hours that resulted in that pay must be shown - either as an aggregate total or broken down by different pay rates.
If your employer fails to provide a payslip, you can bring a claim to an employment tribunal. If the tribunal finds in your favour, it may order your employer to pay the equivalent of any unnotified deductions made in the 13 weeks before the tribunal application. You do not need a solicitor to bring an employment tribunal claim for payslip breaches - you can use the ACAS early conciliation service first, then apply online through the employment tribunal service.
Common Payslip Errors and How to Challenge Them
Payroll errors are more common than most employees realise. A 2022 CIPP survey found that over 30% of payroll professionals had experienced significant errors in the previous year. The most frequent mistakes include: incorrect tax code applied (especially after a job change or benefit change), wrong NI category (particularly for employees approaching pension age or under 21), missed pension auto-enrolment or wrong contribution percentage, student loan deducted on the wrong plan or not started when it should have been, and underpayment of National Minimum Wage or Living Wage.
If you spot an error, raise it with payroll in writing (email is fine) and keep a copy. Your employer must correct genuine errors - the only question is timing. Significant underpayments must be corrected promptly, while overpayments that your employer wants to recover require your agreement on a repayment schedule. If you believe you have overpaid income tax due to a payroll error, HMRC will usually identify this through the end-of-year reconciliation (P800 notice) and issue a refund automatically, but you can also call them or claim via your Personal Tax Account at gov.uk.
Worked Example: Monthly Payslip for £35,000 Salary
Here is how a typical payslip for a salary of £35,000 per year would look in 2025/26, assuming tax code 1257L, NI Category A, 5% pension (relief at source), and Plan 2 student loan (threshold £28,470/year).
Frequently Asked Questions About Payslips
Why is my tax different each month even though my salary is the same?
Under a cumulative tax code, your tax is recalculated each pay period based on your total earnings and allowances to date in the tax year. If you received a bonus in one month, or if your employer corrected a previous under- or over-deduction, your tax for the current month will adjust to make up the difference. Small monthly variations are normal. A sudden large change usually indicates a tax code change, a benefit-in-kind being added, or a prior error being corrected.
What is a P60 and how does it relate to my payslips?
A P60 is an end-of-year certificate that your employer must give you by 31 May each year. It shows your total pay and total tax deducted for the entire tax year (6 April to 5 April). It is essentially the sum of all your payslip figures for the year. You need your P60 for mortgage applications, Self Assessment tax returns, claiming tax refunds, and proving your income. Keep your P60 for at least five years - HMRC can investigate tax affairs going back up to six years in normal circumstances.
Can my employer deduct money from my pay without telling me?
No. Under the Employment Rights Act 1996, your employer can only make deductions from your pay if they are: required by law (tax, NI, court orders), authorised by your contract of employment, or you have given prior written consent for that specific deduction. Deducting money for till shortages, breakages, or stock losses without contractual authority or your written consent is unlawful. If your employer makes an unauthorised deduction, you can bring an unlawful deduction from wages claim to an employment tribunal within three months of the deduction.