One in Ten Employees Naive over Payslips

Almost 10% of Britain’s employees do not understand all the details of their payslips and could be losing out on wages, according to new research from the Institute of Payroll Professionals (IPP).

With September’s National Payroll Week just around the corner, the IPP is calling on all employees to study their payslips and check they understand vital information.

By law, employers are forced to hand out fully itemised payslips on the due date stipulated in employee contracts.  However, a worrying amount of employees fail to grasp their level of National Insurance contributions, employee benefits, pension reductions and even simple taxes when given their monthly slip.

“Organisations are legally required to provide their employees with an itemised payslip whenever they are paid, but it is surprising the number of people who do not understand them,” reiterated Mr Lindsay Melvin, IPP Chief Executive.

“Understanding all the details and figures in one’s payslip is the only way to be completely sure that you are getting paid correctly.  In reality, error rates are very low but knowing your payslip inside and out is the best way to be able to spot mistakes or miscalculations.

“This is particularly relevant with the growing number of organisations implementing e-payslips, by which employees may be even more confused because they are unfamiliar with a new format.”

Experts have also advised employees to keep a record of all their payslips, even if the money has already been spent, so that mortgage or tax credits can be applied for in the future.

While HR departments can iron-out any payslip queries, if you feel you’ve been underpaid by your employer, or wish to launch a tax dispute, speak to an employment solicitor today and find out the options available.