I decided to break down a copy of one of my previous payslips and see what it all means. Hopefully this will help you better understand your own payslip.
Shown as 23597.00, this is my monthly pay before any tax or deductions are applied.
Shown as 37.5, this shows the total numbers of I worked during a working week.
Shown as 1150L CUMUL - ‘Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension’ www.gov.uk
Also know as income tax, totalling £236.20, this is the amount of tax paid on £23597.00, Used by the government to pay for public services.......
National Insurance, total £201.56 is the amount taken from my monthly pay to ‘qualify’ for state or government pension. At the time of writing, national insurance is only taken from your pay if you meet the following criteria:
Total amount £219.45, this is the amount I contribute towards my company pension plan. This is separate from the state pension which is shown as NI A. If I wanted, I could opt out of this plan and set-up a private pension fund with another company. Every person should block off a date and time to make sure they fully understand their pension plan.
Shown as £162.95, this is the total amount of hours I worked over the monthly pay period.
Shown as £12.0679, this is the amount of money paid for every hour worked.
The NHS pay a supplement known as High Cost Area (HCA) pay. This is paid to staff working in inner and outer London. The amount of HCA paid is based on your basic pay and which London zone your company is based in. For me, this totals £393.28
Like most students, I borrowed in order to fund my degree and living costs. For this payslip, £79.00 was deducted and put towards the repayment of my student loan.