Your first payslip, decoded
Gross, net, tax code, NI… Your first payslip can look like a different language. Here's what each bit means and what to check.
You've done the hours. Payday arrives. You open your payslip and… what is all this? Don't worry — almost everyone feels this way the first time.
Gross vs net
Gross pay is what you earned before anything comes out. Net pay is what actually lands in your account. The gap between the two is made up of deductions — and it's worth knowing what they are.
The usual deductions
Income Tax and National Insurance are the big two. You might also see pension contributions — if you're eligible for workplace pension auto-enrolment, your employer pays in too, which is basically free money for future you.
Check your tax code
Your tax code tells your employer how much tax to take. If it looks odd, or has 'emergency' letters on it, you could be paying too much. It's worth checking on the official GOV.UK website or asking your employer's payroll team.
Make a plan before you spend
Before the money disappears, give every pound a job: bills, food, travel, savings, fun. The Money Manager in Power Tools helps you set up your first budget in about ten minutes.
This post is general information, not financial advice. If you're unsure about anything on your payslip, ask your employer or check GOV.UK.
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