United Kingdom
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Payslips explained
UK Payslip Requirements: What Employers Must Provide
Every employer in the UK must provide payslips to their workers. This is not optional. The Employment Rights Act 1996 requires employers to give a written, printed, or electronic itemised pay statement on or before each payday. The payslip must show specific information about earnings and deductions.
If you are hiring in the UK through an Employer of Record, the EOR handles payslip production as part of their payroll service. But you still need to understand what the law requires so you can verify compliance and answer employee questions.
This guide covers exactly what must appear on a UK payslip, who is entitled to receive one, and what happens if you get it wrong.
What Must a UK Payslip Include?
Under Section 8 of the Employment Rights Act 1996, every payslip must contain the following information:
The total amount earned before any deductions. This includes salary, overtime, bonuses, commission, and any other payments.
The take-home amount after all deductions. This is what the employee actually receives.
Amounts that change from one pay period to the next. These must be shown individually on the payslip. Common variable deductions include:
- Income Tax (PAYE)
- National Insurance Contributions (Class 1 employee)
- Student loan repayments
- Pension contributions (if the amount varies)
Amounts that stay the same each pay period, such as union subscriptions or charitable donations. Employers have two options for fixed deductions:
- Show them individually on each payslip, or
- Provide a separate standing statement of fixed deductions at least once a year, with a reference to that statement on each payslip
The second option is common for payroll teams that want to keep payslips cleaner, but it adds an administrative step.
If the employee's pay varies depending on the number of hours worked, the payslip must show the total number of hours being paid. This applies to hourly-paid staff and anyone whose pay fluctuates with time.
If wages are split across different payment methods, such as part cash and part bank transfer, the payslip must show the amount paid through each method.
The payslip should identify the employer. While the ERA 1996 does not explicitly require the employer name on every payslip, best practice is to include it, along with the pay period and payment date.
Who Is Entitled to Receive a Payslip?
The right to a payslip depends on employment status:
Employees have always had the right to an itemised payslip under the Employment Rights Act 1996.
Workers gained the same right in April 2019, when the Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 came into force. This extended the payslip requirement to all workers, not just employees.
Agency workers are entitled to payslips from whoever pays them, which is usually the agency.
Self-employed contractors and freelancers are not entitled to payslips. They invoice for their services and receive payment, but there is no legal obligation to provide a payslip-style document.
The distinction matters. If you misclassify someone as self-employed when they are actually a worker, you could face claims for unpaid holiday pay, minimum wage, and failure to provide payslips.
Must Payslips Be Itemised?
Yes. The law requires an itemised pay statement. This means each deduction must be listed separately with the amount. You cannot simply show a single "deductions" figure.
For variable deductions (tax, NI, student loans), you must show:
- The amount deducted
- What the deduction is for
- Where the employee can find more information (for example, "see HMRC for tax queries")
For fixed deductions, you have the choice between showing them on the payslip or referencing a standing statement (as described above).
A payslip that just shows gross and net with no breakdown does not meet the legal requirement. If an employee takes you to an employment tribunal over pay, a non-itemised payslip weakens your position.
Can Payslips Be Provided Electronically?
Yes. UK law permits electronic payslips. There is no requirement to provide a paper copy unless the employee specifically requests one and the employer agrees.
Common methods include:
- Self-service payroll portals (most common with EOR providers and payroll software)
- Email delivery (PDF attachment)
- Payroll apps (mobile-friendly access)
The key legal requirement is that the employee must be able to access and retain the payslip. If you use a self-service portal, the employee needs login credentials and the ability to download or print their payslips.
For international employers using an EOR, digital payslips are the standard. The EOR's payroll platform generates payslips automatically and makes them available through a secure portal.
What Is a Deductions Statement and When Do You Need One?
A standing statement of fixed deductions is a separate document that lists all fixed deductions from an employee's pay. You need one if you choose not to show fixed deductions on each individual payslip.
The standing statement must include:
You must provide the standing statement before the first pay day and update it within one month of any change. You must also renew it at least once every 12 months.
On each payslip, you must include a reference to the standing statement, such as "Fixed deductions as per statement dated [date]."
- The amount of each fixed deduction
- The intervals at which the deduction is made
- The purpose of each deduction
This approach works well for deductions like union fees, gym memberships, or charity donations that stay the same month after month. But it adds complexity. Most payroll teams prefer to show everything on the payslip itself.
How Does an EOR Handle Payslips for UK Employees?
An Employer of Record takes full responsibility for payslip production. Here is what that looks like in practice:
The EOR runs payroll each pay period, calculating gross pay, deductions, and net pay according to UK law.
The EOR's payroll system produces an itemised payslip that meets all ERA 1996 requirements, including tax, NI, pension, student loan, and any other deductions.
Payslips are made available through a secure employee portal, usually before or on payday. Employees can download, print, or view their payslips at any time.
The EOR ensures payslips are accurate and timely. If HMRC issues a new tax code or there is a change in NI rates, the payslip reflects it immediately.
The EOR retains payroll records for at least three years (six years is best practice), as required by HMRC.
For you as the international employer, this means payslip compliance is handled. You do not need to set up payroll software, hire a UK accountant, or worry about formatting requirements. The EOR does it all.
What Happens If an Employer Does Not Provide a Payslip?
Failure to provide a payslip, or providing one that is not properly itemised, can result in:
- Employment tribunal claims: An employee can bring a claim to determine the correct amount of pay. If the tribunal finds in the employee's favour, it can make a declaration and order the employer to provide proper payslips.
- Financial penalties: If a tribunal finds that the employer deliberately failed to provide payslips, it can award additional compensation.
- National Minimum Wage breaches: Without proper payslips, it is harder to prove compliance with the National Minimum Wage. HMRC can investigate and impose penalties.
These consequences are relatively rare for employers using payroll software or an EOR, but they highlight why payslip compliance matters.
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Frequently Asked Questions
Yes. Since April 2019, all workers, including those on zero-hours contracts, are entitled to receive an itemised payslip. If their hours vary, the payslip must show the number of hours worked.
Yes. Email delivery is acceptable as long as the employee can access and retain the payslip. A PDF attachment is the most common format. You should check that the employee is comfortable receiving payslips by email and has a secure email address.
You should be able to provide a replacement. Most payroll software and EOR portals allow employees to download historical payslips at any time. If you use paper payslips, keep copies for at least three years.
Yes. If the employee is enrolled in a workplace pension, the payslip must show the employee's pension contribution as a deduction. It should also show the employer's contribution, although this is best practice rather than a strict legal requirement.
HMRC requires employers to keep payroll records for at least three tax years. Best practice is six years. The records must be available for inspection if HMRC requests them.
Next Steps
Payslip compliance is a fundamental part of running UK payroll. If you are hiring in the UK and want payslips handled correctly from day one, Agility EOR can help.
Talk to Agility EOR about hiring in the UK.