Payslip Legal Requirements

Every employee in the UK is legally entitled to an itemised payslip on or before payday. Here is what employers must include and what the rules are.

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Key facts

  • All employees and workers (including agency workers) are entitled to an itemised payslip.
  • Payslips must be provided on or before payday.
  • Since April 2019, payslips for hourly workers must show hours worked.
  • Payslips can be paper or electronic (email, online portal, etc.).
  • Failure to provide payslips can lead to an employment tribunal claim.

The Legal Right to a Payslip

Under the Employment Rights Act 1996 (as amended), every employee and worker in the UK is entitled to receive an itemised pay statement (payslip) from their employer. This right was extended to all workers (not just employees) from 6 April 2019.[1]

What a Payslip Must Include

An itemised payslip must show:[1]

ItemDescription
Gross payTotal earnings before deductions
Variable deductionsEach deduction that varies from period to period (Income Tax, NI, student loan, etc.) — shown individually with the amount and purpose
Fixed deductionsDeductions that are the same each period (e.g. fixed pension contribution, union dues) — can be shown as a total if a separate statement of fixed deductions has been issued
Net payTake-home pay after all deductions
Payment methodHow pay is made (e.g. BACS, cheque) — if paid in parts (e.g. partly into two bank accounts), show each amount separately
Hours workedFor workers whose pay varies with hours worked — required since April 2019

Best Practice: Additional Items

While not all legally required, most payslips also show:

  • Employee name and payroll number
  • Employer name and PAYE reference
  • NI number
  • Tax code
  • NI category letter
  • Pay period (e.g. “Month 6” or “Week 22”)
  • Year-to-date totals for gross pay, tax, and NI
  • Employer pension contributions
  • Holiday accrual or remaining holiday days

Tip: Including year-to-date figures on payslips helps employees check their tax position during the year and makes it easier to spot errors early.

The Hours-Worked Requirement

Since April 2019, payslips for workers whose pay varies with hours worked must show the number of hours. This applies to:[2]

  • Hourly-paid employees
  • Workers on zero-hours contracts
  • Staff with variable shifts

Salaried employees on a fixed annual salary are generally exempt from the hours requirement, unless their pay varies based on hours.

Paper vs Electronic Payslips

There is no legal requirement for payslips to be in a specific format:[1]

  • Paper payslips — handed to the employee or posted
  • Email payslips — sent as a PDF attachment or in the body of an email
  • Online portal — available through payroll software or an employee self-service system
  • Payroll app — accessed through a mobile application

The critical requirement is that the employee can access their payslip on or before payday.

Statement of Fixed Deductions

If an employee has deductions that remain the same each period (e.g. a fixed union subscription), the employer can issue a Standing Statement of Fixed Deductions once, rather than itemising them on every payslip. This statement:

  • Must list each fixed deduction, its amount, and the interval of the deduction
  • Is valid for up to 12 months
  • Must be updated if any fixed deduction changes

Frequently Asked Questions

Do agency workers get payslips?

Yes. Since April 2019, the right to an itemised payslip was extended to all workers, not just employees. This includes agency workers, casual workers, and those on zero-hours contracts.

Can payslips be provided electronically?

Yes. There is no legal requirement for payslips to be on paper. They can be sent by email, made available through an online portal, or provided through payroll software. The key requirement is that the employee can access the payslip on or before payday.

What happens if I do not give payslips?

Employees can take the matter to an employment tribunal. The tribunal can order the employer to provide payslips and may award compensation if there was an underpayment of wages that could have been detected from a proper payslip.

Do payslips need to show pension deductions?

Payslips must show all deductions, including pension contributions. Both the employee’s contribution and the employer’s contribution should ideally be shown, along with the pension scheme name.

Further Reading

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Sources

  1. Payslips — GOV.UK
  2. Employment Rights Act 1996: itemised pay statement — legislation.gov.uk
  3. Running payroll — GOV.UK

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