Employee payments

 18 Oct 2018

How and when your employees should be paid

When you undertake a new employee, you’re abided to follow several obligations and inform them:

  • How are they going to be paid? This could be by direct deposit to their bank account or by cheque. For further details, see how you could pay your employees.

  • The dates of their payments - Whether this is on a weekly or monthly basis and if so, the specific day/dates when this will occur, according to your company’s payday. 

As employees, they must be given documentation telling them how much are they going to be earning, and the payday policy, within the two first months of the employee’s starting date with your company. This is generally contained in the contract of employment for the employee. 


 The following are not entitled to receive a Payslip if they are: 

  • Not an employee, contractors, or freelancers.

  • A member of the police service. 

  • A merchant seaman, master or crew member of a share fishing environment and paid solely by the share of the profit or gross earnings of a fishing vessel. 

What must a payslip contain? 

Every payment declaration must contain the following information. 

  • The net amount of the employee's wages, which is the total after deductions.

  • Variable deductions such as individual amounts of each taxes. 

  • Method and amount for any part-payment of wage and the balance credited to a bank account in the annual year.

  • Amount of the employee's wages before any deductions, gross fees.

  • Individual amounts of any fixed deductions or the total amount of the deductions given to the employee under any standing statement of fixed deductions with the corresponding details below. 

The employer can include additional information on the employee's payslip. Although they are not obligated to provide it, such as: 

  • Tax codes.

  • National Insurance Number.

  • Pay rate.

  • Over time, tips, bonuses or any other kind of additional payments, which could be shown separately.

If you’re still unsure what to include, check what the employee will be looking for on their payslips. 

Standing statement of fixed deductions. 

The employers most gust give the employee a standing statement of fixed deductions in case they have not set out any fixed deductions on the employees Payslip.

The statement requires to:

  • Be in writing - This can be electronic or physically provided to the employee.

  • State the amounts and intervals at which the deduction are made.

  • Be updated at least every 12 months.

  • Be given to the employee before the first payslip with the fixed deductions. 

  • Contain the description or purpose of the deduction.

If there is any change that could affect the employee's fixed deductions, the employer must give written notice of the change or an amended statement. 

Problems with the Payslip

If the employee is having any problems or has queries about their payslip, then they will mostly like speak to the employer first and see if the problem can be sorted out informally. If there are any employee representatives or an employee who is a member of a trade union then the employer can ask for their help.

If none of this works, the employee is able to make an application to an Industrial Tribunal. 

If the employee does not receive the full pay, they should always check the payslip given and the contract of employment to seek an explanation as though why they were not paid in full.

Who can help process my payslips

We are here to help you meet all your payroll obligations and we understand the importance it has to your business. Speak to our specialist team today for more information.