Many employees confused by their payslip

A quarter (26.3%) of employees do not understand everything on their payslip, according to recent research from the Chartered Institute of Payroll Professionals (CIPP).

Other alarming figures indicate that a considerable number of employees are not checking their payslip when they get paid, with around one in six (14%) admitting that they only occasionally look at their payslip and 4.2% confessing that they never check.

The CIPP emphasises the importance of workers reviewing their payslip every time they are paid to verify that all the information is correct, including National Insurance contributions, tax, employee benefits and pension deductions. This ensures that if there are any questions or concerns, they can be immediately addressed by the payroll department.

The Chartered Institute also stresses that understanding all the information on one’s payslip is even more necessary due to the imminent introduction of real time information as payroll data will be linked to the benefits system through Universal Credits and if an employee’s pay is incorrect this could impact the benefits they receive.