Gross pay and net pay

Gross pay is the starting figure

Gross pay is the employee's pay before payroll deductions. It can include salary or wages and other earnings due for the period, such as overtime, commission or a bonus.

It is not the employer's total cost. Employer National Insurance, employer pension contributions and other business costs sit outside the employee's gross pay. It is also not always the same as taxable pay, because payroll rules can treat particular payments or benefits differently.

Net pay is what remains after deductions

Net pay is the amount left after deductions from gross pay. These can include Income Tax, employee National Insurance, pension contributions, student-loan repayments and other authorised deductions.

The Acas payslip guide requires gross pay, net pay and deductions to be visible on a Great Britain payslip. Northern Ireland's payslip rules use the same gross-to-net distinction.

Make the bridge visible on the payslip

Someone should be able to start at the earning lines, reach the gross total, follow every deduction and arrive at net pay. An unexplained difference weakens trust even when the final bank payment is right.

Reconcile the payslip with payroll before payday. Keep reimbursements or other non-pay amounts clearly labelled so they are not mistaken for gross earnings. If a deduction is wrong, correct the payroll record and any required report, not only the document the employee sees.