Employment and unemployment - Money Matters
Understanding your pay slips
If you are employed, every time you get paid you will receive a pay slip. It is very important that you understand the information it contains, to make sure you are getting the right pay and paying the right tax.
Every pay slip must contain the following information:
- The amount of your wages before any deductions (gross wages) - this includes any overtime that you have worked.
- Your net pay should be shown - this is the amount that you get to take home after all the deductions have been made.
- The amount of any fixed deductions (such as union membership fee).
- The amount of tax that you have paid.
- The amount of National Insurance you have paid.
About Taxes
QUESTION: Who pays for all our schools, hospitals, benefits, colleges?
ANSWER: We all do
HOW? Taxes
Income Tax
This is a tax on money that you earn. The amount of Income Tax that you pay is calculated depending on how much you earn. Everyone has a tax allowance. That is the amount you are allowed to earn before you have to pay any tax. Your ‘personal allowance’ depends on your circumstances. This money goes to the government to pay for our key services.
National Insurance (N.I.)
This tax is collected specifically to pay for benefits like job seekers, housing and disability allowances. Your N.I. number is unique to you and is used to keep track of your contributions and the benefits which you may get paid. You receive your number on a plastic card when you are 16. The amount of your NI contributions will depend on how much you earn.
