Understanding Payslips

What is a payslip?

Your payslip is a written statement from your employer, showing your gross pay (i.e. your total earnings before tax), PRSI and other deductions.

Your employer must give you a payslip every time they pay you, either when you get paid or shortly after.

Some important facts on payslips:

Your employer can choose whether they give printed or electronic (online) payslips.

Your payslip can be used as proof of your earnings, tax paid and any pension contributions.

Your right to a payslip is in the Payment of Wages Act 1991.

Understanding your payslip

Your payslip must show:

• Your gross pay

• Any deductions from your pay

It can also include:

• Your personal information, such as your name and PPS number

• Your employer’s name and registration number

• The pay period (for example, ‘Month 6’ or ‘June’)

• A summary of your total pay for the year so far (‘cumulative’ pay)

• Your tax credits and cut-off point

Key Terms

Basic pay

Your basic salary not including extra payment types (for example, overtime).

Gross pay

Your total pay before any money is deducted (such as tax or pension contributions).

Total pay is your basic salary and any shift premium, overtime, commission or bonus.

Insurable weeks

The number of weeks that your employment is liable for PRSI (social insurance) contributions.

Net pay

Your total take-home pay, after all taxes and other payments are deducted.

PAYE

An income tax, deducted by your employer using Revenue’s ‘Pay As You Earn’ system.

PRSI EE

Your ‘Pay Related Social Insurance’ (also called your social insurance contributions). ‘EE’ means it is paid by the employee.

PRSI ER

Your ‘Pay Related Social Insurance’ (also called social insurance contributions). ‘ER’ means it is paid for you, by your employer.

PRSI total

The total, combined amount of ‘Pay Related Social Insurance’ paid by you and your employer.

Standard rate cut-off point

The amount you can earn before you start paying the higher rate of tax.

Tax credits

Tax Credits reduce the amount of tax you pay.

USC

The Universal Social Charge is a tax you pay if your gross income is more than €13,000 a year.